With buy to let mortgage rates at a new record low, how can landlords take advantage, and how much longer will these incredible interest rates last?
Already, September has seen the largest monthly decline in the average mortgage rate for over 15 months. According to Moneyfacts, the average price of a two-year fixed rate dropped by 0.14% and five-year rates by 0.12%. But how much longer can this race to the bottom on pricing really continue?
UK inflation hit 3.2% in August (although experts expect it to settle at about 2.5%, which is still significantly above target). Unemployment is at 4.6%, considerably lower than many predicted as we approach the end of the Government’s furlough scheme next week. What does this mean? In a nutshell, an interest rate hike is likely on the horizon.
So where are buy to let mortgage rates today?
Individual investors can expect 60% LTV rates starting from 1.14% and 75% LTV from 1.35%. Now, I’ve been in the BTL industry for more than 20 years, and I can’t remember a mortgage rate as low as 1.14%. It’s truly phenomenal.
For limited company investors, 75% LTV starts from 2.59% (currently lower than any 60% LTV rates).
The rates are still incredible if you’re investing in HMOs and Multi-Units; 75% LTV starts from just 2.65%.*
Of course, if you’re in the market for a new buy to let investment right now, your timing is fortuitous. Call us today to find out what your options are, and let’s get something secured.
Not looking to purchase but have a remortgage coming up? (When I say coming up, I mean in the next six months, which takes us into spring 2022). Remember, many BTL mortgage offers are valid for three to six months (lender dependent) and at current service levels, it takes about four weeks to secure an offer. On this basis, you could secure a new, incredibly low interest rate now and not complete until April! At this point, rates will not get significantly lower; there simply isn’t enough profit margin left for the lenders. Therefore, they’re only going to start creeping up towards the end of the year. Honestly, why wait?
*Rates as at September 2021.