Five-year buy-to-let rates back to record lows | will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by will always be from Be Scamsmart.

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 It is now over 6 months old so the content may be out of date.


Lieke Braadbaart

Online Writer
Published: 05/03/2018

There's some good news for landlords who are coming to the end of a fixed term deal and looking for a new buy-to-let (BTL) mortgage; our latest figures show that the average five-year fixed BTL rate has now returned to the record low last seen in October, sitting at 3.43%.

Buy-to-let averages Mar-17 Jan-18 Mar-18
Five-year fixed rate 3.77% 3.45% 3.43%


The reason for the decreased rate may be the change in stamp duty that occurred in April 2016. A lot of landlords tried to buy property before the change came into effect, as they might have had to pay 3% more in stamp duty afterwards. Those who quickly got a two-year fixed BTL deal at the time will now be coming to the end of their term, which means there's a lot of business up for grabs.

One of the main ways in which lenders can make themselves appealing to borrowers is by reducing their rates, which is exactly what many have now done. Charlotte Nelson, finance expert at, explains that stress-testing could very well be why lenders are focusing on five-year fixed rates, as "the stress test that is applied to two-year fixed rates does not apply to five-year deals."

Additionally, Charlotte reported that "the price war at the lowest end of the mortgage market shows no signs of abating yet, either. As a result, the sub-2% five-year fixed rate barrier has been breached for the first time on record, by The Mortgage Works."

Indeed, while a lower average is all well and good, it's the rates that can beat that average that you'll want to look out for. That's where our Best Buy charts can help, as they show the lowest rates for landlords whether you're looking for a two-year deal, a five-year fixed rate or even a first-time landlord deal.

"The market has changed significantly in the last two years and borrowers now have to work their way through a maze of extra regulation, as well as stricter lending requirements," Charlottes concluded. "Yet property remains an attractive option for many, so it is more important than ever for landlords to seek financial advice to ensure they get the best possible option for them."


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