Buy-to-let mortgage borrowers need to shop around as they approach the end of their deal, says Fool.co.uk.

According to an article published by the finance advisory firm on the buy-to-let market for 2009, landlords need to compare different mortgage rates on the market because remaining on their lender's standard variable rate may not offer them good value for money.

"Visit a broker as the best deals on the market are currently via intermediary-only lenders,"the report said.

It comes after research from Moneyfacts.co.uk this month showed that the number of buy-to-let mortgages available on the market fell by 93 per cent in the last 18 months.

The firm noted that landlords will have to at least afford a 20 per cent deposit on their mortgage in 2009 after deals involving loan-to-value rates of between 85 per cent and 90 per cent, which made up more than 60 per cent of the buy-to-let market a year ago, have now vanished.

Amid recent interest rate cuts from the Bank of England (BoE), Fool.co.uk advised landlords to overpay their mortgage if possible this year, as this could reduce their loan-to-value ratio and open up opportunities for new deals in the future by reducing their current term.

This month the BoE cut the UK base rate to 1.5 per cent, the lowest level in history.ADNFCR-2002-ID-18988435-ADNFCR

Related posts:

  1. Loan-to-value rates blocking ‘property buyers’
  2. Landlords facing tougher lending criteria
  3. Expert forecasts volatile property market in 2009
  4. Property bargains could appear in 2009, expert says
  5. Rate cuts boost buy-to-let sector

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