Banks slash buy-to-let mortgage rates to all time low
According to Moneyfacts the average buy-to-let mortgage over 2 years had now dropped from 3.59pc to 3.32pc while the average five year rate has dropped from 4.37pc to 4pc.
Peter Gettins, product manager at mortgage broker London and Country, explained : “Over the last few months, certainly before the stamp duty change came in, there was a definitely the consideration that there’s a bit of an opportunity to be had, so that increased competition will have pushed lenders to cut rates.”
Mr Gettins said the continued rate cutting isn’t surprising: “There is still a lot of appetite for buy-to-let from lenders, it still represents in most cases very good risk lending.”
Mr Gettins said that everyone is “acutely aware” that landlords costs will go up due to the cuts to taxation relief.
“Really the best way landlords can look to mitigate that impact is to reduce their outgoings, so there is plenty of pressure to push rates down and plenty of competition still left in the market.”
Charlotte Nelson, finance expert at Moneyfacts, said: “While the current pressures on the market are not yet causing rates to rise, borrowers should remember that they will now be facing tighter lending rules, including stricter affordability checks, so it is even more important for potential landlords to seek financial advice to see if buy-to-let really is the right option for them.”