A new survey has found out that long-term (5 to 10 years) fixed rate mortgages are one of the best deal available in the but-to-let mortgage sector. The long-term fixed rate mortgages dominance in the but-to-let mortgage was seen only in the last two years, as earlier the sector was ruled by short-term ones, the survey said.
The survey conduted by Business Moneyfacts suggest that the long-term deals rule the top 15 fixed rate products, out of which 13 products have frozen their interest rates for at least five years, with six of the top seven deals having a fixed rate for between seven and ten years.
Business Moneyfacts calculated the true cost of buy-to-let mortgages over 10 years, taking into account £75,000 interest-only mortgage.
Business Moneyfacts said two years ago, some thought fixed rates were a bit of a waste of money, but not any longer. Now long-term fixed rates offer excellent deal – thanks to rates which have come down sharply, and investors are wary about their repayments for an extended period.
Business Moneyfacts say it is the slowing down of the buy-to-let market which has brought about change in the situation as lenders are looking to woo customers more than before due to competition.
No doubt that the lenders want to hold on to their business and for whom long-term deals mean long-term customers, the Business Moneyfacts said.
Posted
on : Thu, 17 Mar 2005 00:00 GMT | Mortgages News
By : Anne Philips
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