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A new report highlights that a staggering number of landlords face a significant rise in their monthly mortgage repayments in the next 12 months. With the average amount of time a mortgage product is available dropping, how do you ensure you can secure the most competitive deal? 

According to the latest data from The Mortgage Lender (TML), 40% of landlords with fixed, tracker, or discounted mortgage rates are due to refinance in the next seven to twelve months, and a further 41% over the next two to three years.

Given current mortgage product pricing, TML predicts that the average monthly mortgage repayments for landlords coming to the end of their current terms will increase by £615.

TML surveyed landlords facing increased costs to see how they intend to cover these increases. The report found that 30% are considering increasing the rents on their properties, a reassuring 23% have already budgeted for a rise in mortgage payments.

It’s also positive to see that 14% intend to convert the property into an HMO to boost rental yields, and a further 13% are looking to make their property a holiday let.

Chris Kirby, Head of Sales for Midlands, South, and Specialist distribution at TML, said, “With many due to remortgage this year, it’s important landlords speak to a broker to find the most suitable mortgage for them in order to maintain their property portfolios, particularly as costs of living challenges continue.

“Brokers can offer invaluable support and guidance to help provide a holistic view of what deals are most suitable for clients before they rush into any decisions.”


What mortgage products are landlords on?

The report also highlights mortgage product trends amongst landlords. According to TML’s research, most (42%) landlords with a mortgage are currently on a five-year fixed rate, while just 21% are on two-year fixed deals.

Around 15% are on standard variable rate mortgages, and 8% are on a tracker product. Both these mortgage types are most vulnerable to market volatility and are most likely to cause sudden increases in your monthly mortgage repayments.

To see if you could save money on a fixed-rate deal, explore what rates you could access with our FREE buy to let mortgage calculator here.


The shelf-life of a mortgage

What’s more, the average shelf-life of a mortgage product fell to a six-month low of just 15 days, according to Moneyfacts data. This is a sharp drop from the 28-day average we saw at the start of February and comes as a result of lenders reacting to the volatility in the Swap Rate market and their cost of funds rising and falling on a far more frequent basis..

With rates moving so quickly, securing the most cost-effective deal for you can be difficult in this market, so how can you navigate this challenge?


Why work with our mortgage makers

Working with our expert mortgage brokers comes with many benefits, but given the latest data, the key advantages right now for you are:

Whole of market access

As an independent mortgage broker, we review the whole buy to let mortgage market, meaning you can be reassured that we’ve found the best mortgage rate available to suit your needs. We’re also the only mortgage broker with a bespoke buy to let sourcing system. We internally update new rates as soon as lenders change their pricing. This means you can access the latest products as soon as lenders release them.

By working with us, you also benefit from a wider range of mortgage products. We frequently have access to exclusive and semi-exclusive mortgage rates, and we can source rates you won’t be able to access directly from the lender.

Dedicated underwriters and business development managers (BDMs) from key specialist lenders

Our experience and expertise in the market mean we have developed strong relationships with leading industry experts over the years. We have dedicated underwriters and BDMs (Business Development Managers) from specialist and high-street lenders, many of whom visit our offices weekly to talk with our mortgage brokers face-to-face. Your broker will be able to discuss the progress of your application with your lender personally and help them better understand your circumstances to ensure you receive your offer.

These relationships also mean lenders notify us of product changes as early as possible. This means we can work with you to collect any outstanding documents and quickly submit your application, ensuring you never miss the best deals and saving you time and money.  

Knowledge of the market

Our knowledge of the mortgage market is second to none. All experts in their field, our buy to let, homebuyer, and commercial mortgage consultants have a fantastic understanding of the market and what lenders would best suit your application and which mortgage rate will be the most cost-effective for you.

Speak to mortgage maker

To see how our experts can help, get in touch by calling us on 0345 345 6788. We’ll chat through your circumstances and plans on the phone and start exploring your options right away. Alternatively, submit an enquiry online here, and we’ll get in touch at a time that best suits you.

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