Buy-to-let mortgage rates fall further
Buy-to-let mortgage rates are still falling, according to Moneyfacts, but at a slower pace than earlier this year.
The financial information provider noted that, despite the buy-to-let market facing a raft of challenges and regulatory changes, mortgage competition is showing no signs of stopping.
The average two-year fixed buy-to-let rate has fallen by 0.31% in one year, from 3.22% to 2.91%, although the pace of the fall has slowed in recent months.
Moneyfacts also noted that the market has now recovered from the significant drop in products that was seen at the start of this year. There are now 1,610 buy-to-let mortgage products available.
Finance expert at the business, Charlotte Nelson, said: “The buy-to-let market has seen some turbulent times, with significant tax changes, tougher affordability rules and more changes to come into force in September.
“And yet, rates have continued on a downward path. Since the introduction of new regulation in January, however, the pace of the reductions has slowed considerably.
“Product numbers have been bolstered since the dramatic fall that occurred in January, giving landlords looking for a mortgage deal today more choice. This shows that after the initial shock of the changes in January, providers are keen to recover and keep the market buoyant.
“Providers are now starting to gear up for further regulatory changes. From September, lenders will have to apply stricter standards for landlords with four or more properties. Given that 89% of the mortgage deals on the market today are available for borrowers with four or more properties in their portfolio, these changes will affect a large chunk of the market.”