Buy to let fixed rates lowest since September 2022

Buy to let fixed rates lowest since September 2022

0:01 AM, 27th February 2024, About 2 months ago

Text Size

Landlords can benefit from the lowest buy to let fixed rates in 18 months, according to the latest research by

The online comparison site found that the average two- and five-year fixed rates for BTL mortgages have dropped month-on-month, reaching their lowest levels since September 2022.

Six months ago, these rates were the highest on Moneyfacts’ electronic records, which date back to November 2011.

However, the platform is also warning that fixed rates may increase slightly soon, due to fluctuations in swap rates, which influence the cost of borrowing for lenders.

‘Landlords concerned about interest rates’

Rachel Springall, Finance Expert at, said: “Landlords concerned about interest rates may be pleased to find that both the average two- and five-year fixed buy-to-let rates have dropped to their lowest points since September 2022.

“These rates sat at a record-high just six months ago, so this is positive news for borrowers who have been patiently waiting for fixed rates to come down.

“However, it is possible fixed rates will edge up slightly in the coming weeks due to volatile swap rates, so those looking to refinance may wish to secure a deal quickly to not be left disappointed.”

BTL mortgage choice for landlords has been volatile

The platform warns that BTL mortgage choice for landlords has been volatile in recent months, but availability has increased by around 250 deals compared to six months ago.

Ms Springall said: “The ebb and flow of deals makes it essential for prospective borrowers to seek advice to navigate the options available to them.

“Deeper analysis of product choice shows five-year fixed offers have waned month-on-month, but two-year fixed offers are resilient.”

She added: “It will be interesting to see how lenders adjust their ranges in the weeks to come.”

There are more two- and five-year fixed mortgages

The research reveals that there are more two- and five-year fixed mortgages now than there were six months ago and recent data from Hamptons highlights that rent growth on a newly let property across Great Britain rose 8.3% year-on-year – but this was the slowest pace for 13 months.

Hamptons has also signalled that rent growth is expected to run ahead of inflation for the rest of the year.

Ms Springall said: “Still, there will be existing landlords concerned about the ongoing profitability of a buy to let portfolio as their margins have been impacted by a cull in mortgage rate tax relief, tax changes for CGT and holiday lets, plus new EPC requirements.

“Any investor would be wise to seek advice before they commit, and providers will need to work hard to encourage borrowers to refinance and attract new business.”

For assistance with any type of buy to let (BTL), property or commercial finance please complete the contact form below:

Contact Brooklands Commercial Finance

  • How can I help you?

Share This Article

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now