At last there’s some good news for landlords! Buy-to-let (BTL) borrowers who are taking out a new BTL mortgage or are coming to the end of an existing fixed term can take advantage of fixed rate terms with new low interest rates.
Figures by MoneyFacts show that the average five-year, fixed rate BTL mortgage product sits at 3.43%. According to MoneyFacts, the average five-year fixed rate for BTL was 3.77% in March 2017, 3.45% in January 2018 and 3.43% in March 2018.
Charlotte Nelson, MoneyFacts’ finance expert, spoke of the ongoing mortgage price war.
“The price war at the lowest end of the mortgage market shows no sign of abating yet. As a result, the sub-2% five-year fixed rate barrier has been breached for the first time on record by The Mortgage Works.”
The fall in fixed rates for BTL borrowing on five-year terms, has been pinned on the change in stamp duty that took place in April 2016. Prior to the change in stamp duty coming into force, which may have resulted in landlords having to pay an additional 3% in stamp duty, there was a rush from landlords to purchase property before the extra stamp duty had to be paid.
Many landlords at the timejumped on two-year fixed rate terms, which are now about to expire. Consequently, for the mortgage lenders there’s plenty of business up for grabs, hence the competition amongst lenders to offer lucrative five-year fixed rate products.
If you are considering investing in buy-to-let or extending your rental investment portfolio and require assistance or advice on any aspect of buying a propertyas an investment, speak to Badger Holdings.
dot financial services mortgage and protection advisers can help you with your next buy-to-let investment so get in touch today.
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