How Current Market Conditions Could Help Reduce your Mortgage Payments


In August, the Royal Institute of Chartered Surveyors (RICS) released findings that showed a decline in the number of new homes to rent coming onto the market.  Indeed, this was mirrored in haarts own figures which found the number of new landlords registering to buy in August was down 2.9 per cent on a monthly basis and 28.4 per cent annually.

But aside from the impact of increased demand for homes to rent against a fall in supply of available properties, we look at what is happening in another part of the same market: buy-to-let mortgages.

Mortgage lenders are finding that there is a limited number of landlords who are ready to take on new loans.  Meanwhile, there has been a steady increase in the number of mortgage products being available in recent years – and the effect is greater competition, and ultimately some competitive products available.

This means that landlords who can change their mortgage could be well positioned to save money. 

If you’re a landlord with a buy-to-let mortgage you may want to consider reviewing your borrowing arrangements.  For example, Standard Variable Rate mortgages don’t necessarily offer the lowest rates available and with just two Bank of England base rate rises in more than a decade, borrowing costs are at historic long-term lows.  Also, if you haven’t had a financial assessment of your portfolio for some time, you may also find that even the growth in the value of your property can help you secure a lower interest rate too.  That’s because even better mortgage rates are often offered where there is a smaller loan to value (LTV) rate.    

 

The combination of competitive rates and higher property values could provide options for you to save money. If you feel you could benefit from talking to someone about your own mortgage arrangements, we can put you in touch with our sister company Just Mortgages who can assess your individual circumstances and help you find alternative solutions that could save you money.