Mortgage Trust has just launched two competitive Buy to Let mortgage deals for landlords looking to remortgage. There is a 2 year tracker and fixed rate to choose from, with initial rates of 3.99% and 4.99% respectively. Both are available to 75% of the property value, carry arrangement fees of £1098 and offer free valuation and legal work for remortgage.
Mortgage Trust is a brand that was synonymous with Buy to Let but temporarily stopped lending to new borrowers in the wake of the credit crisis. Its parent company, Paragon, which has a strong name as a specialist in portfolio lending returned to the market at the end of September 2010 and now Mortgage Trust is relaunched with a range designed to complement that of its owner.
These are not the only new names to Buy to Let. Last year saw the likes of Aldermore Bank, Precise Mortgages and Kensington all launching into Buy to Let. More recently Skipton BS has returned to the market and Yorkshire BS has stated its intent to lend to Buy to Let landlords.
This gradual improvement in competition is improving the breadth of mortgage options for landlords. Many deals are still charging large percentage fees of as much as 3.50% of the mortgage balance but we are seeing a growing number of products with flat fees.
These can often represent better value, especially for those with bigger mortgages. BM Solutions has also added some attractive mortgage rates to its portfolio and many now have a range of fee options to suit individual landlords’ requirements.