Landlord and BTL Blog: Buy-to-let mortgage

Thursday, March 19, 2009

Buy-to-let mortgage - return of the cap

Landlords I can announce the return of the cap! No it's not some strange of landlord birth control.

Landlord insurance - professional discounted rates - for all landlords

It actually refers to a type of buy-to-let mortgage which allows landlords to hedge against potentially rapidly rising interest rates whilst benefiting in the short term from a low pay rate. This type of buy to let mortgage rate had all but disappeared as mortgage rates over the last 5 years were relatively stable. However, with the introduction of quantitative easing in an attempt to drag us out of a deflationary hole we may all be facing a big inflationary bubble. This will need to be choked off in the next couple of years requiring the Bank of England to raise dramatically the base rate and therefore buy-to-let mortgage rates.

Landlords should think seriously about using a capped buy-to-let mortgage products to insure them against dramatic rate rises.

The capped rate announced are buy-to-let mortgages from the intermediary lending arm of Coventry BS - Godiva. The capped rate is set at 5.49% to 30.06.09 with a current pay rate of 3.99%.

For more of the latest relating to buy-to-let mortgages see below. This information has been bought to you courtesy of Emoneyfacts.

Loughborough BS
Buy-to-let FIXED RATE MORTGAGE of 4.99% for 3 years withdrawn, w.e.f.17.3.09....more
18 Mar 2009
Stafford Railway BS
Buy-to-let STANDARD VARIABLE MORTGAGE RATE will be reduced by 0.25% to 4.50% & VARIABLE RATE for multiple occupancy by 0.26% to 4.99%, w.e.f. 1.4.09....more
17 Mar 2009
The Mortgage Works
REVERT RATES on buy-to-let ONE YEAR PRODUCTS amended to 3.99% for term and NEW FIXED RATES of 4.99% & 5.34% to 30.4.11 launched, w.e.f. 17.3.09....more
17 Mar 2009
The Mortgage Works
Lender advises that due to technical problems buy-to-let launch due 14 March is on hold....more
16 Mar 2009
The Mortgage Works
REVERT RATES on buy-to-let ONE YEAR PRODUCTS amended to 3.99% for term and NEW FIXED RATES of 4.99% & 5.34% to 30.4.11 launched, w.e.f. 14.3.09....more
14 Mar 2009
Coventry BS
MAXIMUM loan to value on FIXED RATE MORTGAGE of 5.40% to 30.6.14 and CAPPED RATE MORTGAGE of 5.49% to 30.6.12 reduced to 60%. FEE on FIXED RATE MORTGAGE of 5.40% to 30.6.14 increased to £1,999. All w.e.f. 13.3.09....more
13 Mar 2009
Godiva Mortgages
MAXIMUM loan to value on FIXED RATE MORTGAGE of 5.40% to 30.6.14 and CAPPED RATE MORTGAGE of 5.49% to 30.6.12 reduced to 60%. FEE on FIXED RATE MORTGAGE of 5.40% to 30.6.14 increased to £1,999. All w.e.f. 13.3.09....more
13 Mar 2009
Loughborough BS
Buy-to-let LENDING AREA restricted to within post codes of LE, NG and DE, w.e.f. 12.3.09....more
13 Mar 2009
Newbury Mortgage Services
Buy-to-let FIXED RATE MORTGAGE of 5.99% to 30.9.13 withdrawn & replaced with FIXED RATE of 5.99% to 31.3.14, w.e.f. 11.3.09....more
12 Mar 2009
RBS IP NatWest
END DATES on buy-to-let FIXED RATES extended to 30 June, w.e.f. 12.3.09....more
12 Mar 2009
Standard Life Bank
END DATES on buy-to-let FIXED RATES extended to 29 June, w.e.f. 12.3.09....more
12 Mar 2009
Leek United BS
Buy-to-let DISCOUNTED VARIABLE RATE MORTGAGE of 5.29% for 3 years withdrawn, w.e.f. 11.3.09....more
11 Mar 2009
The Mortgage Works
ALL buy-to-let VARIABLE BASE RATE TRACKERS reduced by 0.50%, w.e.f. 11.3.09....more
11 Mar 2009