Landlords 'looking for security of fixed deals' - buy to let mortgages

22 January 2009

Seekers of buy to let mortgages have been encouraged to opt for a fixed-rate deal, despite the recent Bank of England base rate cuts.

Andy McQueen, the managing director of The Mortgage Works, has noted that although interest rates are currently low, this may not always be the case.

Therefore, a fixed mortgage may offer more stability than a base rate tracker deal, he argued, stating: "Many investors will be looking for the security or guarantee of payments that fixed-rate products can offer."

He was commenting after The Mortgage Works, which is the specialist lending arm of Nationwide, launched a range of new fixed-rate buy to let mortgages.

They include a three-year fix at 4.79 per cent and a five-year fix at 5.34 per cent.

In addition, the firm is offering an "easy remortgage option" with free valuations, legal fees and energy performance certificates.

Meanwhile, Paul Mooney from Savills has advised buy to let investors that bargains can be found at property auctions due to the high level of repossessions in the UK.