A buy to let mortgage may be better than a savings account.
With low mortgage interest rates available and the Bank of England base rate at an all time low if you have savings you could consider a buy to let property. If you have little return on your savings it could be worth looking at better ways of making your money work for you.
It has recently been reported that home owners who have no mortgage on their home and savings in the bank are moving into the buy to let market in search of better returns. For example if you have a large deposit in a savings account it may currently be earning on average only 3% interest each year.
If you have a substantial deposit for a buy to let property and can get one of the many mortgage deals with low interest rates, the sums may add up to a better return. The rental income on a property, after deducting interest payments and costs, may yield more than a savings account in the current climate.
Of course, as for any property purchase you will need to do your research but it has been suggested that growing numbers are looking to the property market as an alternative to poor savings rates. In many areas there is also a demand for homes for rent from young couples who are not yet able to get onto the housing ladder.
At Deal Direct we can source a wide range of deals from lenders throughout the market. If you are looking for a buy to let product or any other mortgage call us today for the best deals available.
