Low interest rates 'to continue on buy to let mortgages'

02 August 2010

Written by Gavin Elley

People taking out buy to let mortgages will continue to benefit from low interest rates, one expert has said.

Steve Olejnik, head of sales at Mortgages for Business, believes that the base rate will remain at 0.5 per cent for most of 2011 and possibly even longer.

Writing for Mortgage Solutions, he suggested that lenders are likely to go to intermediaries as they begin to re-enter the buy to let market.

The options open to landlords with regard to finance are improving, Mr Olejnik continued, with more products becoming available, while the reintroduction of more competitive deals will lead to increasingly favourable pricing.

He noted new home loans are being offered by Aldermore, Kensington and Precise Mortgages, while The Mortgage Works introduced a buy to let range at a loan-to-value rate of 80 per cent in May.

According to figures from the Bank of England, total net lending for the purchase of property rose in June by £0.7 billion; however, the number of approvals fell.

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