Barclays has announced a series of rate reduction to products within its mortgage ranges, including buy-to-let.
The lender has cut its 75% loan-to-value two-year fixed rate deal from 1.68% to 1.65%. This deal is subject to a £1,795 fee and a maximum loan value of £1m.
A growing number of landlords are opting for two-year fixed buy-to-let deals owed in part to political and economic uncertainty, according to Commercial Trust.
At the end of last year, 68% of its buy-to-let applications were for five-year fixed rate terms and 26% for two-year fixes.
But the broker reports that the percentage of five-year fixed rate deals secured at the end of Q2 of 2019 dropped to 59%, while two-year fixed rate deals are at 39%.
Andrew Turner, chief executive of Commercial Trust, commented: “Five-year fixed rate buy-to-let deals have proved dominant over several quarters, notably since the introduction of the PRA rules, which tightened lending criteria for shorter-term products in 2017.
“Five-year applications remain predominate, but there has been a definite shift to two-year applications during the first half of 2019.
“There could be a number of factors at play here, with the obvious explanation being that the first half of 2019 has seen political and economic uncertainty, largely as a result of Brexit negotiations.
“The Bank of England has at different times hinted at rates rises, should the economy grow in line with their forecasts, but then suggested that a no-deal Brexit could see the base rate cut.
“Many landlords are perhaps looking to hedge their bets for the short-term, with a competitive, low rate buy-to-let mortgage, which will hopefully last beyond all of the uncertainty, without locking them into a long-term agreement.”