Buy to Let

Buy-to-let rates still falling, says Moneyfacts

Buy-to-let rates are still falling, though the pace of the drop has slowed, according to Moneyfacts.

The firm says the average two-year fixed buy-to-let rate has fallen by 0.31 per cent in one year.

Moneyfacts says a two-year fix is now 2.91 per cent, down from 3.22 per cent last July and a drop from 2.92 per cent at the beginning of 2017.

Moneyfacts finance expert Charlotte Nelson says: “The buy-to-let market has seen some turbulent times, with significant tax changes, tougher affordability rules and more changes to come into force in September.

“It is little wonder many thought the buy-to-let mortgage market might show signs of strain. And yet, rates have continued on a downward path. Since the introduction of new regulation in January, however, the pace of the reductions has slowed considerably.”

 There are now 1,610 buy-to-let mortgages tracked by Moneyfacts, compared with 1,402 a year ago and 1,408 at the start of the year.

Nelson adds: “Product numbers have been bolstered since the dramatic fall that occurred in January, giving landlords looking for a mortgage deal today more choice. This shows that after the initial shock of the changes in January, providers are keen to recover and keep the market buoyant.”

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