Buy to let market beginning to improve, RLA says

The buy to let property insurance market may begin to pick up following a difficult 18-month period.

This is the suggestion of the Residential Landlords Association (RLA), which reports that lenders could soon lower both interest rates and required deposit amounts.

London & Country has begun the trend by offering a three-year rate of 6.49 per cent in addition to loans of up to 80 per cent of a residential property's total value.

According to the RLA, a "modest interest rate cut" has also been implemented by Nottingham Building Society.

Landlords taking out a buy to let mortgage can now benefit from a 5.59 per cent rate, while available loans total as much as 70 per cent of a property's value.

Citing LetAssured representative David Plaister, the RLA reported that residential real estate has once again become a "serious investment vehicle" thanks to revised deposit requirements and lower interest rates.

Earlier this month, Coventry Building Society announced plans to reduce interest rates on its residential mortgage products.

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