Content category: Commercial landlord insurance
Buy-to-let mortgage deals being offered to commercial and residential landlords at the moment are becoming increasingly competitive in a bid to attract more people to engage with the property market.
This is according to Lee Grandin, director at Landlord Mortgages, who suggested many major companies are introducing better deals with reduced rates to encourage proprietors to expand their portfolios.
He went on to note that taking out a mortgage - even with lower monthly repayments - can still be a time-consuming ordeal, while it could take a "good few months" for companies to roll out significantly cheaper offers.
Mr Grandin also stated that there has been little in the way of an upturn in the number of property owners applying for a deal, as a number of companies - including Principality and Coventry Building Societies - look to attract more business.
His comments were made after Leeds Building Society announced it had reduced the rate on its two-year fixed-rate buy-to-let option by 0.36 per cent to a new market-leading sum of 3.99 per cent.
Kim Rebecchi, the company's sales and marketing director, said now could be a good time for landlords to keep an eye out for a lower fixed rate deal and the company is aiming to attract professional proprietors who may wish to fix monthly payments.
Mr Grandin went on to note a wider fall in rates may not have a significant impact on the market at present as a result of the economic issues, but it may have positive implications in the future.
"I don't know if it is because [mortgage providers] have a volume of business and want a higher volume of business, or if it is just that they need to try and stimulate things a bit. I think it is probably more the case that the market is still quite subdued," he explained.
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