Landlords looking for a two -year mortgage with a fixed rate, the prices will have fallen in the past year, according to new data from MoneyfactCompare.co.uk.
The typical rate for a two-year fixed buy-to-long mortgage has fallen from 5.95% in February 2023 to 5.49% in February 2024 to 5.40% today.
In the meantime, the average fixed rates of five years in the past year have risen somewhat from 5.48% to 5.56% today.
The new data about the buy-to-long mortgage market also show that the availability of mortgages for landlords has increased to a record high.
The number of fixed and variable mortgage agreements has concluded 3,560 – the highest count on the electronic records of MoneyfactCompare.
In the past month, five years of fixed deals have increased by 92, which means that there are now 1,571 on the market. There was an increase of 114 two years of fixed deals that increase availability to 1,244.
Although the increase in choice, together with the dip in fixed rates of two years, will come as good news for being the Landlords, the costs of borrowing are still much higher than many owners of real estate are used to.
Rachel Springall, finance expert at MoneyfactCompare.co.uk, said: “The views will be mixed about how the buy-to-let market will do this year, but lenders clearly work hard to attract new companies, such as those of new deals at higher loan-to-value company.
“Diving in the general choice of Buy-to-Let Hypotheken shows that there are even more deals with a fixed five-year period, compared to two years, and both counts are at record highs. Five-year-old fixed buy-to-long mortgages have been abundant since June 2020 than their two-year-old counterparts. “
Advice for Landlords RemortGaging
For landlords due to RemortGage, after completing almost a two -year -old deal, the fact that there is more choice today is good news. But for those who are approaching the end of a fixed five -year rate, secured in 2020 before the mortgage interest rate increases, the prices can be more a problem.
Springall added: “The disadvantage of recent years has been volatile interest rates; Fortunately, buy-to-long mortgage interest rate are lower compared to 2023, between bi-annual and five-year fixed conditions. However, if someone has locked up a cheap deal in 2020, he will get a shock this year if he comes refinancing.
“Landlords will hope that the rates will fall this year, but the sticky inflation can slow down further basic rate reductions and the market for Swap rate remains unpredictable.”
“Affordable housing remains in short demand, so the demand for rental properties continues. However, the rising costs take their toll on potential landlords. “
She added: “Both new and existing landlords would be wise to seek advice to assess the latest deals for them and if it is still feasible to retain their portfolio.”