You are here: Home - Mortgages - Buy To Let - News -

Landlords can now lock into record low five-year fixes

0
Written by: Christina Hoghton
06/03/2018
Five-year buy-to-let fixed rates have returned to record lows as lenders compete for business ahead of a switching boom.

The average five-year fixed rate for landlords has fallen to 3.43% – a joint record-low, which was last seen in October 2017, according to financial information provider, Moneyfacts.

A year ago five-year deals were an average 3.77%, so why have buy-to-let rates fallen when wider interest rates have gone up?

Lenders are competing for business because they expect a surge in landlords looking for a new deal in the next few months.

Two years ago buy-to-let property purchases soared, as landlords moved to avoid a new stamp duty surcharge that was introduced in April 2016.

As Moneyfacts points out, those who took a two-year fixed rate deal back then will be ready to switch soon and this means a big boost for buy-to-let lending. In an attempt to attract these borrowers, lenders are chopping rates.

Charlotte Nelson, finance expert at the business, said: “Many borrowers rushed to make purchases in the first few months of 2016, to beat the stamp duty hike. In fact, March 2016 recorded a sharp increase in the purchase of buy-to-let homes. Because of this, a substantial chunk of borrowers are likely to be remortgaging in the coming months.

“In anticipation of this, lenders have started to compete in the five-year fixed rate market to vie for these potential borrowers’ custom. This has seen the average five-year fixed rate fall to the joint lowest on record.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

Your rights for refunds if travel is affected by strikes

There have been a wave of strikes this year across many different industries, and more are planned over Christ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week