Mortgage cashback incentives attract buy-to-let landlords

 

According to research by Which? one-third of buy-to-let mortgages now come with cashback to entice landlords looking at refinancing their portfolios.

Which? analysed data from Moneyfacts.co.uk and found that the number of buy-to-let deals offering cashback incentives has increased significantly since January when just a quarter of fixed-rate mortgage products offered some form of cashback. Remortgaging deals with a cashback incentive have also increased by the same margin in the same time frame.

Big incentives on five-year fixes

The cashback deals available vary from lender to lender, ranging from £250 to a substantial £1,000, with greater incentives available on five-year fixed rate deals, which currently make up 46% of all buy-to-let products.

According to the data, at 60% loan to value (LTV) seven of the cheapest deals come with cashback of between £400 and £500 for buyers, and eight out of ten deals for remortgaging landlords are also offering a cashback incentive.

Plenty of choice for borrowers

The advice to borrowers is not to get waylaid by cashback incentives. While they look attractive, landlords need to consider the bigger picture, i.e. how does £300 cashback look against a fee of £1,995 to secure a mortgage deal?

The good news is that the average rate on a buy-to-let fixed-rate mortgage has fallen by 0.15% since the start of this year, and five-year fixes at 75% LTV have dropped double that by 0.32%. In fact, landlords looking to secure a new mortgage or refinance an existing one have lots of choice with just 0.05% between the top 10 75% LTV deals.

Right now landlords have plenty of scope to hunt down the best deal, and possibly get a cashback bonus at the same time.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

savings landlords

Mortgage cashback incentives attract buy-to-let landlords

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.