Mortgage lenders are shaving percentage points of their buy-to-let mortgage rates in an effort to entice buy-to-let landlords acquiring new properties through their doors.
Fresh figures show that the price of two- and three-year fixed rate buy-to-let mortgage products have dropped to an all-time low.
Mortgages for Business’ January Buy-to-let Mortgage Product Index reveals that the average two-year fixed rate is 2.92% and the average three-year mortgage rate is 3.76%, which is great news for landlords who favour shorter term products, but those wishing to lock into record low rates for the longer term must act quickly, according to the broker.
David Whittaker, chief executive at Mortgages for Business, said: “Longer term swaps in particular have risen in recent months, so it’s no surprise that pricing for five-year fixed rates have started to creep up.
“However, when looking at the bigger picture, these rates are still, on average, less than 1% more than their shorter term counterparts.
“As such, we continue to recommend them to customers as they not only provide a longer period of security against rate rises in an uncertain market, they can also save landlords the time and money it costs in remortgaging more often.”