Competitive buy to let mortgage rates allow landlords to flourish.

Many cash rich landlords are flourishing because of competitive buy to let mortgage rates.

Banks remain reluctant to lend to higher risk first timer buyers with small deposits, preferring instead to support investment landlords in the buy to let sector. 

The number buy to let mortgages advanced increased by over a third in the first quarter of this year and currently accounts for 1 in 8 outstanding mortgages.

Landlords are being supported by banks to cash in on investing in rental accommodation for those unable to climb on the property ladder because of tightened lending criteria and high deposit levels.

Lenders best buy to let mortgage rates still remain under 4% and while lenders average rates are increasing buy to let offers still remain highly competitive.

Rental yields are good, average rent in the UK currently sits at £709 a month, which is an increase of 2.4 per cent on levels recorded in 2011. Rental yields have also risen and are now 5.2 per cent, however investors are advised to take into account rental yield is calculated before costs are accounted for.

With savings and investments currently producing little return buy to let remains a good investment opportunity. According to the Council of Mortgage Lenders property investors now generally need a deposit of around 25 per cent, but at this level a very competitive deal can be found.

Deal Direct as 'whole of market' brokers can search the entire UK mortgage market to source the most competitive buy to let mortgage rates on offer.

Contact one of our skilled advisers today for buy to let mortgage advice.