LETTING & ESTATE AGENT

Lowest ever average buy-to-let rates

Lowest ever average buy-to-let rates

Landlords can take advantage of the lowest buy-to-let (BTL) mortgage rates ever recorded, according to research from Moneyfacts.co.uk.

The data analyst said competition in the sector has ramped up of late, with providers not only increasing their product choice, but making those products highly attractive.

The number of BTL mortgages available has risen from 757 to 811 in a single month – meaning there's now far more choice for landlords seeking to secure a good deal – and at the same time, the average rate has fallen significantly.

The average fixed rate BTL mortgage currently stands at the lowest level ever recorded, priced at 3.82% across all terms, marking a reduction of 0.4% in the last year (down from 4.22% in February 2014).

The average variable rate BTL has fallen even further, now standing at 3.63%, a drop of 0.54% from February 2014, when the same mortgage was priced at 4.17%.

"When you consider how dire savings rates are it is hardly surprising that BTL is proving popular with investors, and this is likely to increase once the rules relaxing the drawdown of pension pots in April come to fruition," said Sylvia Waycot, editor of Moneyfacts.co.uk.