Mortgage Trust has cut its arrangement fees on its two mass-market fixed rate products from 1 per cent to £499.
The fixed rate period has also been extended by an extra three months. Both products are available at 85 per cent LTV, the first is fixed at 5.59 per cent until 30 April 2006 and the second is fixed at 5.89 per cent until 30 April 2008.
The Mortgage Works and Mortgage Intelligence exclusive deal is a two-year fix priced at 5.44 per cent and is only available for un-regulated buy-to-let loans. The deal reverts to base rate plus 1.95 per cent and has a LTV of 80 per cent.
Charles Gooding, managing director of First4Brokers, commented: “I think the buy-to let market will continue to grow as people seek alternative investments to pensions and there is no doubt that lenders will see the market as a potential growth area if residential growth slows.”
Austin Jelfs, head of sales and marketing at Mortgage Trust, said: “With the expected continuation of slowing house prices throughout 2005 the advantage has been tipped towards buyers, and with the demand for private rented accommodation gathering pace we are certain that Buy-to-Let investors will be keen to make the most of their increased bargaining power.”
Sally Laker, managing director of Mortgage Intelligence, said that analysts who had predicted the demise of the buy-to-let market had been proved wrong:
“Despite recent rumours, the buy-to-let market is far from slowing. Many mortgage pundits have been predicting that lenders will launch attractive deals in January and this is just the kind of product that our 4,500 members have been waiting for,” she said.
