After a turbulent 12 months, how high are buy to let mortgage rates? Is now a good time to secure a new rate? Consultant broker, Narinder Gill, examines the data.
According to new data from Moneyfacts, the average buy to let mortgage rate for two and five-year fixes have fallen to their lowest level since January 2021.
Back in January, the average two and five-year fixed buy to let mortgage rates were 2.89% and 3.27%, respectively. Since then, buy to let lenders have continuously shuffled pricing around in reaction to the stamp duty deadline changes and their own caseloads. At the end of May, the average mortgage interest rates for two and five-year fixes were 2.95% and 3.30%, respectively.
The 65% loan to value (LTV) market has seen the most significant reductions in pricing over the last three months; average buy to let rates here now sit at 2.68% and 3.17% for two and five-year fixes. By raising a 35% deposit with cash funds or equity from other properties, those looking to purchase could really benefit from these competitive rates!
Here at Mortgages for Business, we also track buy to let mortgages rates. Looking at our data, these average buy to let rates for May 2021 are even lower than the averages we saw over the latter half of 2019 and the first quarter of 2020 when we thought that market couldn’t get more competitive! At the start of 2020, before the pandemic hit, the average two-year fixed rate was 3.04% and five-year fixed 3.42%. The fact buy to let mortgage rates are now even lower than pre-pandemic shows how much appetite lenders have at the moment. This competitiveness between them is undoubtedly a benefit to proactive investors looking to secure a deal.
Whether you’re looking to purchase or remortgage, rates aren’t going to get lower than they are now, so take advantage! We can help expand your portfolio with a quick (and free) review to identify where you can release equity for further investment. Not looking to purchase but have a remortgage on the horizon? You can often secure a remortgage rate up to six months before your current fixed period ends. So, if you want to snap up one of these headline-making low mortgages, get in touch now, and we can run through your options!
Call me, Narinder Gill on 01732 471604 or email me email@example.com, and we can look at the options available to you.