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TODAY'S OTHER NEWS

Buy-to-let bonanza as rates fall while deals hit 1,000

The buy-to-let mortgage boom continues with rates falling sharply while the number of products on the market hits a seven-year high of 1,000.

The average variable rate now charges 3.60%, down from 3.99% in August 2014, a drop of nearly 10%.

The average fixed-rate buy-to-let mortgage charges 3.80%, down 11% from 4.29% one year ago, according to new data from Moneyfacts.co.uk.

This is the first time the number of buy-to-let deals has hit 1,000 since April 2008.

Growth has been driven by pensioners’ new-found ability to access their whole pension pots combined with the promise of high returns.

Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “With high rents and poor savings rates, it’s little wonder that the buy-to-let market is booming.

“The boom in deals has undoubtedly been boosted by providers taking advantage of the new demand from thousands of pensioners making the most of the new pension freedoms."

Nelson warned that potential investors need to be sure that buy-to-let will still be profitable in future.

This follows Chancellor George Osborne's recent tax crackdown, which may force many amateur landlords to consider selling their properties.

Nelson said: “Anyone thinking about entering this sector would be wise to seek the advice of an independent financial adviser to see if buy-to-let really is the best place for their investment.”

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