Pension freedom

The number of cheap buy-to-let mortgages on the market has risen by more than three-fold in the run up to new pension freedoms, new research shows.

In total, investors can choose from 226 different fixed rate deals compared to 162 six months ago and 71 a year ago, according to data from Moneyfacts, which analyses financial products.

It defined this as two-year fixed deals below 3pc or five-year fixed arrangements with rate under 5pc (see the table below).

Lenders face fewer rules on buy-to-let mortgages as it is treated as business lending, in contrast to residential lending which is tightly regulated by the Financial Conduct Authority.

The new pension freedom rules, which began on April 6, has grown the potential pool of buy-to-let invetors, with those over 55 able to access their money more easily although subject to their own marginal tax rates.

At Daniels we have seen the portfolio of properties we manage on behalf of buy-to-let clients grow year on year for over twenty years and we believe these latest changes will only see that trend continue. Please ask if you have any buy to let questions you would like us to answer.