This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The most recent data released by Mortgages for Business has revealed that average buy-to-let rates for two and three year products have dropped to their lowest levels on record.
Rates for these products stand at 2.92% and 3.76% respectively.
Low Fees
However the report also shows that five-year fixed rates rose for the second month in succession, standing at an average of 3.77%, This is more than the average price of a three-year fixed rate for the first time since January 2015.
In addition, the Index found that January was a good month for short-term tracker products. Two-year buy-to-let tracker rates stayed at an average of just 2.81%-unchanged from December.
Buy-to-let rates slide to record lows
David Whittaker, CEO of Mortgages for Business, observed: ‘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% 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.’ [1]
‘At the very least, landlords should consider having some properties mortgaged on longer term fixes to spread risk. The fact that these rates are beginning to rise now should prompt landlords to take action sooner rather than later,’ Mr Whittaker added.[1]
[1] http://www.propertyreporter.co.uk/landlords/btl-rates-fall-to-record-lows.html
