Money Street News
  • Please enable News ticker from the theme option Panel to display Post


Buy-to-let loans are finally becoming more affordable, as the cost of buy-to-let mortgages has dropped across all LTVs, Moneyfacts analysis shows.

The cost of 2-year fixed rates dropped to 5.49% in February 2024, down from 5.95% in January, as well as a high of 6.88% in August 2023.

With 5-year fixed rates they’ve similarly fallen from a high of 6.72% in August 2023 and 5.91% in January 2024 to reach 5.48% in February 2024.

Despite this apparent good news, rising swap rates mean this trend is unlikely to continue in the near future.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Landlords concerned about interest rates may be pleased to find that both the average two- and five-year fixed buy-to-let rates have dropped to their lowest points since September 2022.

“These rates sat at a record-high just six months ago, so this is positive news for borrowers who have been patiently waiting for fixed rates to come down.

“However, it is possible fixed rates will edge up slightly in the coming weeks due to volatile swap rates, so those looking to refinance may wish to secure a deal quickly to not be left disappointed.”

Overall buy-to-let product availability has fallen month-on-month by around 250, standing at 2,838.

Springall added: “Any investor would be wise to seek advice before they commit, and providers will need to work hard to encourage borrowers to refinance and attract new business.”





Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

SUBSCRIBE TO OUR NEWSLETTER

Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.


No, thank you. I do not want.
100% secure your website.