New buy to let mortgage range launched
Aldermore Commercial Mortgages and Mortgages for Business have teamed up to launch a new range of buy to let mortgages. Keystone Buy-to-Let Mortgages will be aimed exclusively at those who buy properties on an investment basis and as such their mortgage products will be aimed at professionals and companies with a strong property investment portfolio.
The range intends to provide a wide selection of fixed rate and discounted buy to let products which will give investors the opportunity to take their mortgage with a company that understands their particular position, and should save money as well.
The buy to let market is particularly important right now, as one of the stronger areas in a faltering mortgage market, and more investors and private landlords are necessary to keep the property market afloat as well as to keep the economy moving in difficult times.
Mortgages for individuals have begun to take a downturn in recent months, with the tightening of restrictions on interest only mortgages in particular, as well as a generally stricter policy being put in place to protect lenders from borrowers who end up unable to pay back their mortgages. With property prices going down and borrowers struggling to pay back their loans, lenders are left with the possibility of not making back the money they have lent out even if they do repossess the property, as the borrower may have fallen into negative equity. This has come as a blow to those with bad credit histories or those looking for contractor mortgages, and may have led to the downturn in the amount of mortgage applications coming through.
With buy to let this is a distinctly less likely possibility, as the tenants pay the mortgage repayments off as part of their rent. This means that after the homeowner has paid out the initial deposit and fees for their home, the chance of them being unable to pay back their mortgage repayments is low, making them strong candidates for mortgages and helping lenders to feel secure.
For those who own a number of properties and use property investment as their business, and a great way of making a sizeable profit, this new mortgage range should be welcome, and will help those who may only be considering taking out a buy to let mortgage to make that jump into the property investment market.
Article by: Taj Kang, Associate Director at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager.
Tel: 0844 44 88 800