The average fixed rates for both two- and five-year terms have dropped month-on-month – a sharp contrast to the record high rates witnessed just six months back, when rates were the highest since the electronic records of Moneyfacts began in November 2011
Buy-to-let fixed rates in the UK has declined significantly over the past months, touching their lowest levels since September 2022, according to Moneyfactscompare.co.uk.
Latest data analysis from the price comparison site shows that average fixed rates for both two- and five-year terms have dropped month-on-month – a sharp contrast to the record high rates witnessed just six months back, when rates were the highest since the electronic records of Moneyfacts began in November 2011.
In spite of the drop in rates, the overall product availability for BTL mortgages, encompassing both fixed and variable types, has seen a drop over the last month. Nonetheless, when compared to the situation six months earlier, there has been a rise of around 250 options for borrowers.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, noted the positive shift for landlords concerned about interest rates, with significant reductions in both the two- and five-year fixes.
She, however, did not rule out the potential for marginal increases in fixed rates in the near future because of wavering swap rates, advising those considering refinancing to act quickly to secure favourable deals.
A notable area of volatility in the market has surrounded product choice; the overall count has declined month-on-month, but availability is up by nearly 250 deals compared to six months ago, she added. The ebb and flow of deals makes it essential for potential borrowers to seek advice to navigate the options available to them, she said.
She added: Deeper analysis of product choice shows five-year fixed offers have faded month-on-month, but two-year fixed offers are strong.
Springall referenced a study by Hamptons, suggesting an 8.3% year-on-year rise in rental growth for newly let properties across Great Britain, although at the slowest pace in 13 months. In spite of this slowdown, Hamptons expects rental growth to surpass inflation for the remainder of 2024.