Moneyfacts – Five-year BTL rates drop to record lows
The average rate on a five-year fixed rate buy-to-let mortgage has fallen to 3.43 per cent, a joint-record low, according to Moneyfacts.
This average rate was last seen in October 2017.
Rates have fallen from an average of 3.77 per cent last March.
It is nearly two years since the stamp duty surcharge was introduced on purchases of second homes, so many will now be thinking about remortgaging, Moneyfacts points out.
Moneyfacts finance expert Charlotte Nelson notes that many buy-to-let borrowers rushed to make purchases in the first few months of 2016 in a bid to beat the stamp duty hike.
She adds: “Five-year fixed rates are likely to be a popular choice among landlords, as the stress-test that is applied for two-year fixed rates does not apply to the five-year deals. This could well be one of the reasons why buy-to-let lenders have focused competition within this market.
“The price war at the lowest end of the mortgage market shows no signs of abating yet, either. The sub-2 per cent five-year fixed rate barrier has been breached for the first time on record, by The Mortgage Works.”
Source: Mortgage Strategy