Barclays reduce buy to let application fee by £500 for small loans
Barclays have revealed that they are due to drop the application fee for smaller buy to let loans by £500 as of tomorrow. Loans of between £125,000 and £200,000 will now carry an application fee of £2,499 in order for the lender to make their buy to let contractor mortgages more competitive and hopefully draw in more custom as the economy continues to struggle and a 2012 recession looks likely.
Barclays have also promised to keep their mortgage rates the same across the board offering those looking at buy to let deals a more cost effective loan.
In recent times the buy to let market has boomed with rents rising and the demand for rental properties continuing to climb. This gives those looking to buy a property on a buy to let basis the perfect conditions to do so, with an almost guaranteed return on their investment. Property prices remain low, which gives potential landlords the chance to make back their money and pay off their mortgage quickly as they can buy a property at a cheaper price, use rent payments to pay off the mortgage at the highest repayment amount over the shortest time possible and look forward to the possibility of their property having risen in price by the end of the mortgage repayment term.
In this situation, lenders will now have to compete to come up with the most competitive deals to attract potential borrowers and Barclays’ new deal is bound to trigger similar moves by other lenders. In fact recent data released by Mortgage Flow has shown that six banks including Leeds Building Society and Aldermore Mortgages are now offering 80% deals on their buy to let products, and average interest rates for buy to let mortgages has dropped from 5% to 4.79%, demonstrating that confidence in the buy to let market is continuing to grow.
For borrowers looking to take on a buy to let property there hasn’t been a better time in recent years to take up one of these deals and really see a good return. With such a wide range of deals available, from five year fixed rates to two year tracker mortgages, the choice means any potential landlord should be able to find a contractor mortgage that suits their current position.
Article by: Susan Grant, Senior Mortgage & Financial Consultant at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager.
Tel: 0844 44 88 800
Email: media@contractormortgagesuk.com
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