Data published by LSL Property Services has revealed that landlords are, on average, making a 12.7 per cent return on their investments when capital gains and rental income is lumped together in the same basket. This is much better than any return landlords could have expected to make on money sitting in a savings account, so clearly the current buy to let market is a good choice for those who have some cash to invest
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. However, as great as these results are, costs are not taken into account, so once mortgage payments, tax, and maintenance costs are factored in, the picture will not be quite as rosy for some landlords.
New High Street Mortgage Deals for Landlords With new deals on offer from buy to let lenders, high mortgage interest rates are not something landlords need to worry about just yet. Most experts don’t expect mortgage interest rates to rise for quite some time, particularly as a general election is looming on the horizon. Consequently, many big name lenders have slashed their interest rates for buy to let borrowers – Leeds Building Society has cut its two year fixed rate deal from 3.49 per cent to 3.09 per cent for landlords with enough cash to put down a 40 per cent deposit.
Great Fixed Rate Deals There are also plenty of other fantastic rates on offer to landlord borrowers. Skipton Building Society has a great seven-year fixed rate deal, which will allow you to keep a close track on your expenditure for few years. It is also worth paying a higher application fee in return for a lower interest rate.