BTL Mortgage Rates Rise | moneyfacts.co.uk

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 It is now over 6 months old so the content may be out of date.

Derin Clark

Derin Clark

Online Reporter
Published: 01/12/2020

Landlords looking to remortgage or buy a new buy-to-let (BTL) property should consider locking into a mortgage deal soon as average BTL mortgage rates are rising.

Research carried out by Moneyfacts.co.uk found that between the 1 October 2020 and 27 November 2020, average two year fixed BTL mortgage rates across all loan-to-value (LTV) increased from 2.85% to 2.90%, while average five year fixed BTL rates across all LTVs increased from 3.22% to 3.26%.

During this period, average rates increased on the two and five year fixed deals at 80%, 75% and 60% LTVs with the exception of five year fixed deals at 60% LTV, which fell by 0.04%, from 2.90% on 1 October 2020 to 2.86% on 27 November 2020. The biggest average rate increase was on two year fixed deals at 80% LTV, which increased by 0.19% from 3.97% to 4.16%.

As well as this, as the below chart shows, average rates have increased on all the LTVs on both two and five year fixed deals since 1 March 2020. The biggest increase between 1 March 2020 and 27 November 2020 was average two year fixed rates at 60% LTV, which rose by 0.67% from 1.89% to 2.56%.

 

Average BTL mortgage rates
  1 March 2020 1 October 2020 1 November 2020 27 November 2020
BTL two-year fixed - all LTVs 2.77% 2.85% 2.89% 2.90%
BTL two-year fixed - 80% LTV 3.56% 3.97% 4.07% 4.16%
BTL two-year fixed - 75% LTV 2.80% 2.84% 2.92% 2.98%
BTL two-year fixed - 60% LTV 1.89% 2.52% 2.53% 2.56%
BTL five-year fixed - all LTVs 3.24% 3.22% 3.28% 3.26%
BTL five-year fixed - 80% LTV 3.98% 4.27% 4.55% 4.34%
BTL five-year fixed - 75% LTV 3.33% 3.24% 3.33% 3.38%
BTL five-year fixed - 60% LTV 2.31% 2.90% 2.83% 2.86%

 

Commenting on the increase in average rates, Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “Landlords who are considering investing or refinancing their BTL properties may wish to explore their options soon – both in order to capitalise on the possible savings available via the stamp duty holiday before this expires at the end of March 2021, but also before rates potentially increase even further. While average rates have risen recently, competitive deals are still available and therefore seeking support and guidance from a qualified professional may be invaluable in securing the best product for individual circumstances.”

What are the best deals in the BTL charts today?

Landlords looking for a two year fixed BTL deal will find the lowest rate at 60% LTV comes from Halifax, which offers 1.40% fixed until 28 February 2023. The lowest two year fixed rate at 75% LTV is from The Mortgage Works, which offers 1.59% fixed until 31 January 2023. Landlords looking for a two year fixed deal at 80% LTV will find that Accord Mortgages has the lowest rate, offering 3.98% fixed until 31 March 2023.

Meanwhile, landlords looking for a five year fixed deal can get the lowest rate at a 60% LTV from Halifax, which offers 1.70% fixed until 28 February 2026. Landlords looking for the lowest rate at a 75% LTV will find it comes from The Mortgage Works, which offers 1.94% fixed until 31 January 2026. Meanwhile, the lowest five year fixed rate at 80% LTV comes from Molo Finance, which offers 3.29% fixed for five years.

Landlords looking for a new BTL mortgage can compare all the deals available in our BTL mortgage chart. Alternatively, those who would like held and advice on choosing the right deal for their needs should consider speaking to a mortgage broker.

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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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