Buy-to-let mortgage rates reached highest level

Buy-to-let mortgage rates have reached their highest levels since the Covid crisis began. According to the analysis from Moneyfacts, the rates can still further rise.

Buy-to-let mortgage rates have been increasing since last summer and are now at their highest level since November 2019, says Moneyfacts. The average two-year fix has jumped from 2.51% in May 2020 to 2.92% today.

And the typical five-year fix has increased from 2.94% to 3.29% over the same time period. Moneyfacts considers it a good time for investors to consider their options.

The best part is that the number of landlord mortgages on offer is at its highest level since March 2020. However, product numbers are still not back to pre-crisis levels.

There are currently 1,976 buy-to-let mortgages on offer, from lows of 1,455 in May 2020. However, this is still some way below the 2,897 products available in March last year.

The number of 80% LTV mortgages has increased five-fold since May when just 19 products were on the market. In the last month alone a further addition of 26 deals at this level took the total to 100.

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A spokeswoman, Eleanor Williams at Moneyfacts, said:

“Following an overall increase of 158 since December, there are now 1,976 BTL products on offer, with growth being seen across nearly all the LTV tiers.”

“It is especially positive for landlords with lower levels of deposit or equity, as this growth has extended to the slightly higher-risk 80 per cent LTV bracket.”

“Here, an increase of 26 deals since December could be an indication that despite the still uncertain economic outlook, BTL mortgage providers are keen to cater to these customers.”

She further added a word of caution, noting the data showed the market had remained volatile since the start of the New Year.

“Lenders have been adjusting their offerings and consequently availability continues to fluctuate,” Williams added.

If you need further advice on buy-to-let mortgage rates, please call us. Our financial advisors will be delighted to offer you a free initial consultation.

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