Record low for five-year buy-to-let mortgage rates
The average five-year fixed rate for landlords has dropped to its lowest-ever level, according to Moneyfacts.
The financial information provider said that, despite huge change in the buy-to-let market over the last few years, lenders have responded with competitive rates.
The average five-year fixed buy-to-let rate is currently 3.4%, compared to 3.43% last year and 3.77% two years ago.
Charlotte Nelson, finance expert at the business, said: “There has been a lot of upheaval for landlords and many are taking a step back, with the number of buy-to-let property purchases down 11.1% year-on-year in July 2018 (the latest month for which data is available). In response, providers are doing their best to re-engage borrowers by making their deals more attractive, absorbing some of the cost themselves in order to keep rates low.”
She continued: “While it is great news for landlords that the long-term deals are cheaper, borrowers know all too well that with the potential for further base rate rises in the future, these low rates are unlikely to last. Therefore, any borrower sitting on their standard variable rate or coming to the end of their term would be wise to consider a new deal now before it’s too late.”