Following a first quarter defined by successive rate cuts, buy-to-let fixed rates increased in April.
According to new data from Mortgages for Business, buy-to-let fixed rates rose in April across two, three and five-year terms.
The average five-year fixed rate buy-to-let mortgage went up from 3.74% to 3.76% in April.
Three year buy-to-let rates rose from 3.53% to 3.56%, while two-year rates went up from 2.86% to 2.90%.
This is the first month since January when that fixed and variable products have increased.
Average rates for some terms had consistently fallen for even longer, particularly three-year fixed rates, which fell every month between April 2016 and March 2017.
Across this period the average three-year fixed rate fell from 4.50%, to 3.53%, with each new month from June setting a new record low.
Steve Olejnik, COO of Mortgages for Business, said: “For some time now buy-to-let mortgage lenders have been cutting rates to maintain lending volume in a sector that has been actively targeted by both the taxman and the regulator. Rates can only fall so far, however, and figures from April suggest we may have reached the limit.”
Although April brought increases in fixed rates, especially for shorter terms, no discernible pattern emerged among variable rate products.
Five and two-year tracker rates increased by 0.02% and 0.12% respectively, but others continue to fall. Three-year variable rates fell 0.02%, while term product rates fell by 0.11%.
What Mortgage has teamed up with London & Country to offer you expert advice on the right mortgage deal.
Whether you’re buying a new home, remortgaging to a new deal or buying an investment property, L&C can help – and you’ll pay no fee for their advice. To find out more, click here.
