Interest rates for BTL mortgages fall once more
Interest rates on buy-to-let mortgages are beginning to fall, making investing in property to let out more tempting.
The latest data from Moneyfact.co.uk, shows that since the beginning of May 2021, the average buy-to-let mortgage has fallen by 0.04%. The average five-year fixed rate for all loan-to-values (LTV) has decreased by 0.05%.
Since March 2021, the decrease in interest rate has been even more pronounced, with the average BTL mortgage rate falling by 0.10% and the average five-year fixed rate for all loan-to-values by 0.11%.
Since the start of May 2021, the average two and five-year fixed mortgages have fallen by 0.20% and 0.15% respectively to 2.68% and 3.17%.
According to Moneyfacts, the drop in interest rates on fixed BTL mortgages is “great news for landlords with the required level of deposit or equity.”
Eleanor Williams, an expert in finance at Moneyfacts.co.uk, commented on current BTL landscape: “As lockdown restrictions begin to ease, the prevailing sentiment in the UK seems to be that of optimism.
“For a sector that has been beset by various changes and challenges over the last five years or so, the buy-to-let market is exhibiting remarkable resilience,” said Williams.
Among the lenders making cuts is Virgin Money, which, according to Moneyfacts made rate reductions of as much as 1.06% on a number of its products in May 2021.
Investors who are willing to lock into a five-year fixed rate deal at 80% LTV will benefit from decreasing interest on mortgages.
As well as falling interest rates, landlords are witnessing the choice of mortgage deals available also increasing. In March 2021, the number of BTL products on the market rose by 233. As of April 2021, there were 2,333 buy-to-let mortgage deals available, making it the highest of the year, following a tendency for lenders to withdraw certain products at the start of the pandemic.
If you are thinking about capitalising on falling BTL mortgage rates, buying at auction can be the perfect way to find the right house for the right price.
Check out the lots we’ve got listed in our next property auction, or contact our friendly team to find out more about buying property at auction.