Buy to let fixed rate mortgages fall to all-time low
Tuesday 14 February 2017
New data shows that the price of two and three year fixed rate BTL mortgages has dropped to an all-time low, as lenders try to tempt landlords into buying.
Mortgages for Business suggested the average pricing of two- and three-year fixed rates reached lows of 2.92 per cent and 3.76 per cent respectively.
Mortgage Brain, a technology firm in the mortgage industry, says the cost of an 80 per cent Loan To Value (LTV) two year fixed mortgage is 18 per cent lower than it was at the start of 2014 and 11 per cent lower than it was a year ago.
And the lowest rate three year Fixed BTL mortgage with an 80 per cent LTV (at 3.39 per cent) is now 16 per cent lower than it was three years ago and 10 per cent lower than last year.
The firm also says the cost of a longer term 60 per cent LTV five year fixed BTL mortgage is now 15 per cent lower than it was in 2014; its 70 and 80 per cent LTV counterparts are 14 and 11 per cent lower respectively.
A Mortgage Brain spokesman said: “Like our recent residential mortgage product analysis the BTL sector looks like it could be levelling out and moving away from the long period of historic lows in terms of costs and rates.”
Mortgages for Business advised those wishing to take advantage of record low rates for the longer term to act quickly.
Chief executive David Whittaker said: “Longer term swaps in particular have risen in recent months, so it’s no surprise that pricing for five-year fixed rates have started to creep up.
“However, when looking at the bigger picture, these rates are still, on average, less than 1 per cent more than their shorter term counterparts.
“As such, we continue to recommend them to customers as they not only provide a longer period of security against rate rises in an uncertain market, they can also save landlords the time and money it costs in remortgaging more often.”
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