Important news has emerged in the mortgage market that the average rate of a buy-to-let mortgage has fallen to its lowest ever level. Moneyfacts.co.uk recently reported their findings, which will certainly be welcome news to landlords across the UK. The statistical findings from Moneyfacts.co.uk showed that both fixed and variable borrowing is falling significantly.
The specific details reveal a 0.4% fall in the average fixed rate for buy to let customers, settling at 3.82% (the lowest ever recorded average rate), meanwhile variable rate buy to let mortgages have fallen ever further to 3.63%, reflecting a 0.54% drop from February of last year.
Is Greater Competition Responsible?
There is no doubt in the mortgage industry that competition for buy to let mortgages has seen a notable increase. In the course of a month the number of buy to let mortgages available rose dramatically, from 757 to 811, reflecting a plethora of choice for landlords. Parallel to the recent falls in buy to let rates, the mortgage type has certainly enjoyed a surge in popularity and relevancy.
Sylvia Waycot, the editor of Moneyfacts.co.uk, looked to cast a more detailed eye over the developments, suggesting that it was not a surprise that providers are actively competing for buy to let customers: “When you consider how dire savings rates are it is hardly surprising that BTL is providing popular with investors, and this is likely to increase once the rules relaxing the drawdown of pension pots in April come to fruition.”
Potential for buy to let rates to continue to fall is certainly ever present. With experienced landlords expected to make the most of the low rates and a wave of new, potential landlords also predicted to be enticed by the dramatic drops in rates, many providers will likely capitalise on the popularity of this market and adjust rates accordingly.
Time To Get Involved?
A strong combination of product choice and extremely favourable rates certainly present the perfect opportunity for would be landlords to make their way onto the buy to let ladder. Consider your options and the cost implications, but their really hasn’t been a better time to enter the market.
Are you interested in acquiring a buy to let property, speak to The Mortgage Centres today about the best rates.