Scowering as I do the financial press to find the best buy-to-let mortage deals for landlords, I recently came across this new mortgage featured on citywire.
This new Buy to Let loan from mortgage broker Charcol at 4.31% is the cheapest currently available.
The loan is linked to US$ three-month libor, but is denominated in sterling so there is no exchange rate risk. The loan is a five or ten year tracker at either 1.95% over US libor for five years or 1.65% over US libor for the ten-year version.
In addition there is a concessionary starting rate of just 2.99% until the end of June this year. With US three-month libor currently standing at just 2.66% the pay rate on the five-year loan is 4.61% or 4.31% if you go for the ten-year version.
Although US interest rates have been lower than UK rates for a very long time, will this remain the case? ‘US three month libor has been lower than its UK equivalent for all but 18 months out of the last 20 years, and is currently well over 2% less,’ Ray Boulger of Charcol points out.
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