Fixed rate BTL mortgage rates decline
There has been an ‘across the board’ decease in fixed rate buy-to-let mortgage rates, according to the latest research by online mortgage broker Property Master.
The decline comes as the Bank of England meet for the last time to rule on the base rate ahead of the October 31 Brexit deadline.
Angus Stewart, chief executive at Property Master, said: “Once again we have seen the cost of buy-to-let mortgages fall across all the categories we track.
“At the moment lenders in this marketplace have a glut of money to lend.
“The current downward pressure on rates in the money markets means they are able to source funds cheaply at historically low interest rates.
“Secondly, some lenders have also drawn in money from the consumer market by launching headline-grabbing savings rates which whilst still low are relatively attractive.”
“More generally no-one really wants to predict the outcome of Brexit but it may be that certainty, one way or another, is just around the corner.
“Once the market is more certain about what is happening this volatility and the bargains it has thrown up will probably come to an end.
“Landlords may not have long to benefit. Even if a landlord’s fixed rate is not yet due to expire it would be worth looking at what is currently available.
“In some situations, it might be worth paying to exit an existing fixed rate deal early. With some lenders willing to hold a new product deal for up to six months there is an opportunity to apply now and see what happens with rates.
“It will pay most landlords to at least review their position while rates are low.”
Property Master’s 2019 Mortgage Tracker for September shows the biggest fall in monthly cost was for 2-year fixed rate buy-to-let mortgage offers for 50% LTV.
The 5-year fixed rate buy-to-let mortgages also fell across all categories tracked.