Following a first quarter defined by successive rate cut, buy-to-let fixed rates increased last month across two, three and five-year terms, according to Mortgages for Business.
According to the company’s latest Buy-to-let Mortgage Product Index for April, the average five-year fixed rate buy-to-let mortgage went up from 3.74% to 3.76%, three-year rates rose from 3.53% to 3.56%, while two-year rates increased from 2.86% to 2.9%.
This is the first month since January that fixed and variable rates in the buy-to-let mortgage sector have risen.
Average rates for some terms had consistently fallen for even longer, particularly three-year fixed rates, which fell every month between April 2016 and March 2017.
Across this period, the average three-year fixed rate dropped from 4.5%, to 3.53%, with each new month from June setting a new record low.
Steve Olejnik, COO of Mortgages for Business, commented: “For some time now buy-to-let mortgage lenders have been cutting rates to maintain lending volume in a sector that has been actively targeted by both the taxman and the regulator. Rates can only fall so far, however, and figures from April suggest we may have reached the limit.”
Although April brought increases in fixed rates, especially for shorter terms, no discernible pattern emerged among variable rate products.