Rates on buy-to-let loans have hit a record low as a result of fierce competition among lenders, the latest research from comparison website Moneyfacts.co.uk shows.
The average cost of buy-to-let loans with both fixed and variable rates has dropped to 3.82 per cent across all terms, the lowest level ever recorded.
The number of deals has jumped to 811 from 757 within a month.
Lenders are racing to offer the best fixed rates and beat rivals to the most attractive residential mortgage deals, which has livened up the market.
The restrictions to lend only to borrowers with high deposits have also been loosened. The number of deals in the 60, 65 and 70 per cent loan-to-value ranges have declined to 845 from 1,021.
Around this time last year the number of deals for borrowers looking for a mortgage in the 100 per cent to 75 per cent loan-to-value range was 2,662. Now, the number stands at 2,943.
“Having had several years of the bank door being firmly shut to only the richest of borrowers, doors appear to not only be open but actively entice you in off the street with offers of fantastic rates,” Sylvia Waycot, editor at Moneyfacts commented.
