There’s good news for buy-to-let investment landlords, as finally the number of mortgages available has increased again.
Back in September 2009, there were only 179 mortgage choices – down considerably from the massive 3,662 deal options on offer in August 2007. But according to research by financial group, MoneyFacts, the mortgage market has taken a turn for the better, with a rise up to 304 mortgage options for investment landlords.
It’s still nowhere near the choices available in 2007, but given the low levels we’ve seen in recent years, it’s a significant improvement. What’s more, the choice of mortgage options available for landlords has increased too, opening up more potential for landlords who only have small deposits available.
Making a welcome return are 80% and 85% mortgages, plus the average interest rate on a two year fixed rate loan has dropped from 5.96% to 5.66%. It’s all good news for the buy-to-let market, which is picking up well after being hit by the recession.
However, not everyone is getting too excited quite yet. It’s not yet clear whether or not the new government will be making changes to capital gains tax. If it is increased – and some predictions are suggesting that it could rise to as much as 40% on non-business assets, such as buy-to-let properties – then it could have a bit of an effect on the buy-to-let market.