With house price inflation still outstripping the growth in average earnings, many potential first-time buyers are choosing to rent rather than over-stretch their financial resources and limit their other lifestyle choices. Landlords are responding by increasing their portfolios of affordable property to let.
Interest rate revisions and improved features, introduced following this month's Bank of England base rate cut to 4.5 per cent, make buy-to-let mortgages from the Chesham Building Society among the most attractive on offer in this increasingly competitive sector.
The Chesham's new variable tracker rate is only 4.94 per cent for the first three years, just 0.44 per cent above the Bank of England's base rate, and it is then set at 0.99 per cent above base for the remainder of the term - currently 5.49 per cent, the overall cost for comparison is 5.6 per cent APR. There's a low reservation fee of £449.00 and modest early repayment charges only apply for the first three years.
For landlords looking for a mortgage that starts low and stays low, Chesham Building Society also offer a Flexible tracker rate, guaranteed to remain 0.5 per cent above the Bank of England Base Rate for the term of the mortgage, currently 5.00 per cent (the overall cost for comparison in 5.2 per cent APR). With a reservation fee of £495, the Flexible Tracker allows landlords to make overpayments or pay the mortgage off early.They can also use any overpayments they have made to make underpayments, or even take a payment holiday.
