Buy-to-let Mortgages in 2023
The buy-to-let market has faced some significant challenges in the last quarter of 2022, but as the dust settles, we can see positive changes taking place. Lenders are reducing their interest rates, with Coventry Building Society leading the way by cutting rates up to 1.00% across some of their BTL product range. This, coupled with improvements to stress test calculations by Leeds Building Society and other lenders, has helped clients' ability to borrow and is a step towards a return to normality.
As we move into the second quarter of the year, it's clear that lenders are competing more fiercely for good quality, low-risk business in the buy-to-let sector. This trend is likely to continue, resulting in further enhancements that enable lenders to fill their pipeline for completion activities throughout 2023.
At present, the market-leading rates for personal named buy-to-let mortgages are 3.99% for a 2-year fixed term with The Mortgage Works. For SPV's/Ltd Company transactions, rates start from as low as 4.59% for a 5-year fixed term with Fleet Mortgages. These rates are significantly lower than the peaks at the end of last year, highlighting the positive improvements that have taken place in a short period.
However, there is still room for more improvement, and there can be substantial differences between providers' offerings. For this reason, good quality advice is crucial in this sector. Nevertheless, the outlook for the buy-to-let market is undoubtedly much more encouraging than many had feared only a few months ago. As the financial services team at Grange Mortgages, we remain committed to providing our clients with the latest market insights and advice to help them make informed decisions about their investments.
If you're interested in exploring your options in the buy-to-let market, get in touch with the financial services team at Grange Mortgages. Our experienced advisors can help you navigate the market and find the best mortgage options for your needs. Contact us today to schedule a consultation and start making informed decisions about your investments.