btl mortgages have they always been so expensive?

new_home_owner_3

I currently rent my house out i got consent to let from my lender and my current deal expires in about 4 years, now ive looked at some of the buy to let deals now and the fees for a fixed rate now are about 3.5% of the loan.:eek:

Have they always been this high?

I have been told they was a lot lower than this a few years ago and do you people think it will return to how it was before?

Thrugelmir

new_home_owner wrote: »

I currently rent my house out i got consent to let from my lender and my current deal expires in about 4 years, now ive looked at some of the buy to let deals now and the fees for a fixed rate now are about 3.5% of the loan.:eek:

Have they always been this high?

I have been told they was a lot lower than this a few years ago and do you people think it will return to how it was before?

Yes, BTL is a commercial loan. Only rapidly rising house prices made leveraging up to buy property a commercial success in more recent years. Unless you have a sizable chunk of capital to invest the returns aren't great for many.

Conrad

I suspect lower fees will only come when plenty of lenders return to buy to let. Currently a mere handful remain in the market so demand for thier loans is veru robust, hence they can charge large fees.

As to when other market participants might enter is anyones guess - 2 years / 5years?