Record lows for buy-to-let fixed rates
Fierce competition in the buy-to-let sector has driven fixed-rate mortgages to their lowest-ever levels.
Data from Moneyfacts.co.uk, provided to Mortgage Strategy, shows average buy-to-let fixed rates have fallen significantly over the past two years as lenders turn their attention to landlords. The average rate for a two-year fix has fallen from 4.84 per cent in August 2012 to 3.78 per cent this month. They have dropped 25 basis points from 4.03 per cent in the past year.
Five-year fixes have fallen from 5.31 per cent to 4.51 per cent over the past two years. A year ago the average five-year fix stood at 4.8 per cent. Tracker products have also fallen, with average two-year trackers falling from 4.41 per cent in August 2012 to 3.5 per cent this month. In the last 12 months, two-year trackers have declined by 62 basis points from 4.12. Five-year trackers have fallen from 5.15 per cent to 4.85 since August 2012, though in the last 12 months rates have actually increased slightly from 4.73 per cent.
A spokeswoman for Moneyfacts.co.uk says buy-to-let fixed rates are currently at the lowest ever levels.
(Source Mortgage Strategy)
This article was written by Bright Mortgages