Landlord mortgage rates fall to lowest level since start of 2021
Average mortgage rates for landlords have fallen to their lowest level since the start of the year, said Moneyfacts.
The financial comparison site said that two- and five-year fixed buy-to-let rates have fallen to 2.95% and 3.30% respectively.
The largest reductions since the start of the month are on mortgages available to 65% of the property’s value, for landlords with a 35% equity stake.
Two-year fixed rates in this bracket have fallen by 0.20% percentage points to 2.68% since the start of this month.
Landlords with just a 20% deposit will pay significantly more, at an average 4.2%.
Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “Our latest research shows that landlords searching for a deal may be very pleased to see that the overall two and five-year average fixed rates for all LTVs – currently at 2.95% and 3.30% respectively – have dropped to the lowest levels since the start of this year, with both having fallen further in the first 21 days of this month. This seems to show an appetite for business from lenders to cater to borrowers who are keen to invest.
“Indeed, as providers continue to tweak their ranges, we have seen rate reductions of as much as 0.90% from TSB, while Virgin Money made cuts of up to 1.06% on a selection of its products this month.”