Buy-to-let mortgage rates rocket in November
Buy-to-let mortgage rates have shot up in the last month, since the Bank of England hiked its Base Rate.
According to Moneyfacts, the average two-year tracker buy-to-let mortgage rate has risen by 0.20% to stand at 2.43% today.
The financial information provider said that 2017 has been a trying year for the buy-to-let mortgage market, which has been faced several regulation changes as well as rising rates.
Fixed rates rise too
Average two-year fixed buy-to-let rates have also risen from 2.89% to 2.93% in the last month.
Charlotte Nelson, finance expert at moneyfacts.co.uk, said: “Variable rates are designed to track Base Rate, so an increase to the two-year tracker rate is little surprise.
“However, not only has the average variable tracker rate increased, so too has the average two-year fixed rate, seeing rates bound upwards and nearing June 2017 levels with the highest monthly rise since April 2015.
“The criteria changes for portfolio landlords and the rising fixed and variable tracker rates will start to eat into the returns of landlords, making many consider whether buy-to-let is still the right option for them. With rates on the rise, it is important that buy-to-let landlords weigh up their options carefully.”