Cheap buy-to-lets increase threefold
With 2-year buy-to-let fixes potential landlords had 16 deals to choose from one year ago, but today that figure has risen to 83.
And with 5-year fixes there are now 143 products available, up from 55 a year ago.
Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “Buy-to-let mortgages are experiencing a renaissance, becoming not only more widely available but cheaper, too.
“With more 5-year fixed rate deals charging below 5% than ever before, it is little wonder that the newly emancipated pensioners are genuinely considering buy-to-let as a retirement option.”
Currently the average 2-year fix costs 3.45% and the average 5-year fix is 4.25%.
Nelson added: “Those looking at this [buy-to-let] route as an alternative to a pension need to look at all aspects of the mortgage.
“Many lenders restrict the age they will borrow up to, so older borrowers would be wise to seek the guidance of a financial adviser who can access a larger portion of market.”
“With easy savings to be made you are now likely to be recouping more in rent, which will allow you to get a bigger return on an investment.”