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Mortgage lenders offer ten-year fixed-rate BTL mortgages

Jamie Royston
28.01.19

With the uncertain economic and political landscape, the prospect of long-term financial security is becoming increasingly attractive to buy-to-let landlords.

In response to such uncertainty and the raft of legislation changes landlords are being forced to tolerate, lenders are offering attractive, low-interest BTL mortgages for long fixed-rate terms.

Longer rate terms often come can come with lower interest rates than shorter terms. For example, according to Moneyfacts, the average five-year fixed mortgage is currently 3.40%, while a ten-year term is significantly lower at around 2.8%.

In September 2018, TSB offered the lowest interest rate for a 10-year fixed deal on BTL mortgage when they decreased their rate by 0.10% to 2.39% on a 60% loan to value mortgage. Two low rate 10-year fixed deals are available with Coventry Building Society, one at 2.85% on a 50% loan to value (LTV) and one at 2.95% on 65% LTV mortgages.

Nationwide recently joined the race to offer the most competitive mortgages for landlords, enabling investors to fix their mortgage for a decade at just 2.74%.

Noting the benefits of fixing BTL mortgages at a good deal for the long term, This Is Money writes:

“Landlords may have felt under the cosh over the past two years but for new entrants and those looking to remortgage rates have barely ever been cheaper.

“And as interest rates look likely to rise in the not so distant future, locking into a longer term might seem like a safe bet.”

As well as offering a low-rate ten-year term, lenders are starting to offer attractive mortgages to investors without early repayment charges, providing landlords with a greater degree of flexibility.

The Mortgage Works, Nationwide’s landlord arm, now offers a 10-year fixed-rate deal, which is void of early repayment charges after the initial five years. However, this mortgage comes with a slightly higher interest rate of 3.24% on a 65% LTV.

If you are interested in investing in buy-to-let property and capitalising on the current climate of low interest, long-term mortgage rates for landlords and have peace of mind of financial security in the ensuing years, a property auction can be a great place to find your perfect property investment.

Take a look at the current lots in our forthcoming property auction for your ideal property investment in London, the south east and further afield.

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