With interest rates at a record low level, competition among mortgage providers, somewhat unsurprisingly, continues to hot up, with lenders shaving percentage points off their buy-to-let mortgage rates in an effort to entice buy-to-let landlords acquiring new properties through their doors.
Figures presented to Landlord Today by Moneyfacts reveal that there are currently 1,457 buy-to-let mortgage products available, which is up year-on-year.
“The buy-to-let market is booming. With over 100 more deals available compared to a year ago and the average fixed rate on buy-to-let falling from 3.65% to 3.34% in 12 months, it’s easy to see how lenders have an appetite for new business,” said Rachel Springall, finance expert at Moneyfacts.
According to Mortgages for Business’ latest Buy-to-let Mortgage Product Index, the price of two- and three-year fixed rate buy-to-let mortgage products have dropped to an all-time low, with the average two-year fixed rate having dropped to just 2.92%, while the average three-year mortgage rate is now 3.76%, which partly explains why remortgaging levels in the sector has seen a surge in activity of late.
“Landlords can make considerable savings by switching to a new buy-to-let mortgage deal, with rates hitting new lows borrowers could reduce their regular mortgage payments each month,” Springall added.
Here is a list of the ‘best buy’ buy-to-let mortgage products currently on the market.