Landlords Shift Toward Short-term Fixed Mortgages As the financial authorities predict a next to zero inflation for the UK, a growing number of landlords are favouring shorter-term fixed rate mortgage deals with attractively low rates. Award winning brokers, Mortgages for Business supported this with the results from their Property Investment Survey for 2014 (*1). They found that as of the final quarter of last year, the proportion of property investors applying for two-year fixed rate mortgages had nearly doubled since the beginning of last year.
David Whittaker, managing director at Mortgages for Business, said: “Tempted by cheap rates, landlords are deciding to take their chances with a shorter term deal.” “It’s true that these ultra-competitive mortgage rates will probably continue for some time – as the financial world increasingly predicts virtually zero inflation in the UK and Eurozone, plus a cooling rate of economic growth. That doesn’t mean there’s no room for caution. Even in such an exceptional situation, rates are still expected to rise in due time. However, landlords now seem willing to take the chance that won’t happen for at least a couple of years.”
“However, we maintain our recommendation to fix for longer, particularly where the pricing difference between three and five year fixed rates is narrow.” For those landlords looking for longer-term payment security, a great new product from The Mortgage Works (TMW) has just been launched. TMW, part of the Nationwide Group is now offering a ten-year fixed rate mortgage in the buy to let sector. The only ten-year deal on the market that is available to landlords.
For further information on two-year, ten-year and other fixed rate mortgage deals, contact local mortgage providers for Bristol Westbury Capital Partners or go directly to Mortgages for Business - See more at: http://www.thelettinggame.co.uk/News/142/Short-term-Fixed-Mortgages.aspx#sthash.UIMqMmro.dpuf