The buy-to-let mortgage that lets landlords sell up without exit fees if they need to

Times are tough for landlords at the moment and many may be thinking of exiting the market as returns continue to be squeezed into 2019.  

But selling up isn’t always as simple as it sounds. The housing market has ground to a halt in the run up to Brexit, as many homeowners stay put to see the impact it will have on house prices.

Landlords thinking of selling up but unsure whether market conditions are right just at the moment could benefit from a new buy-to-let tracker deal from TSB which doesn’t carry any early repayment charges.

This could be a good option for those who need to remortgage to save on costs and would like to sell but don’t know how long that will take or when they may do it. 

Lenders are becoming more innovative as tough market conditions lead to a drop in demand

Why is this being offered now?

Lenders are becoming more innovative in the buy-to-let space as tough market conditions have led to a drop in demand.

For example, in the past two weeks Leeds Building Society has cut its buy-to-let rates and NatWest has relaxed its lending criteria. 

Last year saw the first drop in the number of homes available to rent in 18 years as the effects of adjustments to stamp duty and mortgage interest tax relief began to force landlords out of the market.

TSB’s new deal coincides with a study from Kent Reliance which found that more than a third of landlords are looking to cut their annual spending as rising running costs and higher taxes bite.

Over a third have either already begun to cut the cost of running their portfolio or plan to do so in the near future. This is equivalent to around 900,000 landlords cutting costs. 

Nearly a third of landlords surveyed hope to cut their outlay on mortgage interest payments, by an average of 23 per cent, by remortgaging in the near future.

Lenders have responded by widening their offerings and bolting on more attractive incentives.

Landlords currently have the pick of more buy-to-let mortgages than at any time since the financial crisis, according to the latest research from Moneyfacts.

However, while the choice of 2,162 buy-to-let mortgages is the most since October 2007, the seemingly heightened competition among lenders for buy-to-let business has not extended to the interest rates that are on offer.

The average two-year fixed buy-to-let mortgage rate has increased by 0.20 per cent to 3.12 per cent since September 2018 and the average five-year fixed rate has increased by 0.15 per cent to 3.61 per cent, a stark contrast to the residential mortgage market where rates have recently been falling.