12 Mar 2021
Many mortgage providers are still willing to lend to new property investors, despite the economic uncertainty caused by Covid-19.
The percentage of deals available to first-time landlords in the buy-to-let market has actually increased over the last 12 months. There were more than 1,300 mortgages available to new landlords last month.
Eleanor Williams, a finance expert at Moneyfacts, said it was positive to note that, at 65%, the proportion of the buy-to-let market available to first-time landlords had grown by 4% year-on-year.
"Would-be investors have plenty of choice, and this is an indication that providers are committed to servicing this demographic of borrowers."
But mortgage rates have been on the way up.
The average first-time landlord two-year fix was 3.1% last month – a rise of 0.3% year-on-year. The typical five-year deal jumped to 3.66% from 3.31% during the same period. However, there are cheaper offers out there.
The lowest rate available in the first-time landlord chart currently stands at 1.64% fixed to March 31, 2023.
Meanwhile, Aberdein Considine has just relaunched its rent-guarantee insurance scheme for its fully-managed landlords. If the tenant fails to pay the rent, the policy will:
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