Landlords have been urged to take advantage of low interest rates after the cost of buy-to-let mortgages dropped to the lowest level seen this year.
Many landlords are preparing to buy more properties against a backdrop of rising rents across most of the country. More than a quarter plan to expand their portfolio over the next year, according to research by investment consultancy Knight Knox.
Alongside the prospect of higher income, mortgage rates for landlords have fallen to the lowest levels seen for months.
The average two and five-year fixed-rate buy-to-let loans have fallen to 2.95pc and 3.3pc respectively, according to data company Moneyfacts. The rates are 0.1 percentage points and 0.11 percentage points cheaper than in March and the lowest seen since January this year.
Investors with bigger deposits can access rates closer to 1pc, with two-year fixes available in the market from 1.19pc and five-year fixes starting at 1.64pc.
Rents outside London hit a six-year high earlier this year with landlords reporting an overwhelming demand for homes and some properties being let within 14 days of coming to market.
Ashley Thomas of Magni Finance, a high-net-worth broker, said buy-to-let rates were currently very competitive.
“A lot of clients we have spoken to have indicated they are looking to grow their property portfolio outside of London, where the demand and yields are higher.
“But London is still considered a long-term strategy by most, as house prices are expected to continue rising.”
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