You are here: Home - Buy to Let - News -

Landlord mortgage rates fall to lowest level since start of 2021

0
Written by:
24/05/2021
Buy-to-let mortgage rates have dropped over the last month, but the best deals go to landlords with a large deposit
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.

Big winners

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.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your Mortgage Guides

Your Mortgage Award Winners 2020-2021

Download our guide to the best mortgage lenders in the UK

Read More >

Read previous post:
Investing in holiday lets: The pros and cons

Renting out a property as a holiday let can be lucrative but there are potential drawbacks to consider

Close
+ +