Buy-to-let landlords can now find mortgages with interest lower than 1 per cent, after two lenders slashed their rates.
Those buying a home to live in have enjoyed super-low rates for some time, but this is the first time landlords have been able to get in on the action.
The Mortgage Works, Nationwide’s buy-to-let arm, has launched a loan with a record-low rate of 0.99 per cent, thought to be the lowest ever rate on a buy-to-let mortgage.
The two-year fixed rate is only available to landlords with deposits of at least 35 per cent.
The real sting in the tail of the headline-grabbing rate is the hefty fee which is the equivalent of 2 per cent of the loan amount. For a home of £400,000, for example, a buyer would need to pay a substantial £4,800 – and that is before the valuation fees.
Also being offered by the landlord arm of the Co-operative Bank (Platform), which has launched a buy-to-let mortgage with a 1 per cent rate.
The two-year fixed deal is available to those with deposits of at least 40 per cent and comes with a fee of £2,450.
Known as the ‘premier’ buy-to-let mortgage, it is only available on property purchases between £350,001 and £500,000, and the landlord must have a household income of at least £60,000.
They can also only have a maximum of three buy-to-let properties.
Both TMW and Platform’s products are available for both purchase and remortgage.