Buy To Let Updated:
The latest Moneyfacts.co.uk 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 Moneyfacts.co.uk'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.
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