Buy-to-let fixed rates tumbling - Buy To Let - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Buy-to-let fixed rates tumbling

Buy-to-let fixed rates tumbling

Category: Buy To Let

Updated: 25/09/2013
First Published: 25/09/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The latest research reveals that fixed mortgage rates for buy-to-let (BTL) borrowers have tumbled over the last year.

The news comes just a day after West Brom Building Society announced it would be hiking its BTL tracker mortgage rates by 2% in December, a change that will affect 6,700 of its borrowers.

In September 2012, the average BTL fixed rate stood at 5.05%, but that rate has now dropped to 4.33% - only 0.01% above its all-time low of 4.32% recorded in July 2012.

Yet coinciding with this is a drop in buy-to-let product numbers.

This time last year, BTL borrowers could choose from 325 products, but that figure has now fallen by 69 to 256 products.

"Renting a property has become the only option for many people, even those who aspire to owning their own home given the difficulties faced by first-time buyers, so the fortunes of the BTL market are also vital to the housing economy," said's Editor Sylvia Waycot.

"The number of fixed rate BTL mortgages being marketed seems to be narrowing but this should not cause alarm as long as rates continue to fall."

Ms Waycot added that the news of falling fixed rates could provide a "golden opportunity" to those BTL borrowers who've been affected by the tracker rate hikes and are now looking for an alternative mortgage product.

What Next?

Find the best fixed rate buy-to-let mortgages

Looking for impartial mortgage advice? Talk to our partner Which? Mortgage Advisers on 0800 316 6704

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Buy-to-let mortgage availability drops

It’s been a turbulent year for buy-to-let (BTL), with Government interventions impacting the sector and activity dampening as a result, and our latest figures reveal the largest drop in the number of available mortgage products since 2009.

Number of parent landlords on the rise

The cost of renting is on the rise, but would it cheaper if you were renting from your own parents? Many children of property moguls will hope so, and with the number of parent landlords on the rise, it’s something more and more could benefit from.

Landlords: BTL mortgage rates are still falling!

The cut to base rate has had a welcome impact on mortgage rates, and it isn’t only residential borrowers who are benefiting: buy-to-let (BTL) investors are continuing to enjoy a fall in rates, particularly those looking for a longer-term deal.