Landlords in the UK âmay be pleasedâ as interest rates for buy-to-let (BTL) mortgage products have dropped to their lowest level in two years, according to new figures.
Analysis carried out by Moneyfacts has found that average two-year and five-year fixed rate mortgages have fallen to a low not seen since September 2022.
These mortgage rates were the highest six months ago based on the financial information websitesâ records.
Furthermore, there are around 250 more fixed and variable BTL mortgage products than there were six months ago.
Do you have a money story youâd like to share? Get in touch by emailing money@gbnews.uk.
Landlords are benefiting from recent changes to the mortgage market
GETTY
Despite this good news, Rachel Springall, finance expert at http://Moneyfactscompare.co.uk, urged borrowers to be cautious amid ongoing changes in the mortgage market.
She explained: âLandlords 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.
âThese 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.
âHowever, 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.â
Here is a breakdown of how mortgage rates have changed in the last six months for each of the available BTL mortgage products, according to Moneyfacts:
Two-year fixed rate BTL all LTVS
6.88 per cent for August 2023
5.49 per cent for February 2024
Two-year fixed rate BTL at 60 per cent LTV
6.64 per cent for August 2023
5.22 per cent for February 2024
Two-year fixed rate BTL at 75 per centLTV
6.87 per cent for August 2023
5.51 per cent for February 2024
Two-year fixed rate BTL at 80 per cent LTV
7.54 per cent for August 2023
6.30 per cent for February 2024
Five-year fixed rate BTL all LTVs
6.72 per cent for August 2023
5.48 per cent for February 2024
Five-year fixed rate BTL at 60 per cent LTV
6.18 per cent for August 2023
4.87 per cent for February 2024
Five-year fixed rate BTL at 75 per cent LTV
6.76 per cent for August 2023
5.51 per cent for February 2024
Five-year fixed-rate BTL at 80 per cent LTV
7.29 per cent for August 2023
6.20 per cent for February 2024.
The Bank of England base rate is at a 15-year high of 5.25 per cent GB NEWS
In recent months, the property market experienced a trend of reductions in mortgage rates across high street banks and building societies.
However, in recent weeks, this trajectory has reversed with lenders such as Santander opting to hike rates once again.
This comes as a blow to homeowners who have been saddled with skyrocketing mortgage repayments following the Bank of Englandâs series of hikes to the base rate.
Analysts are betting on the central bank to begin cutting interest rates once again later in the year which will likely have a knock-on effect on mortgage products.
