Landlords looking to remortgage will be able to take advantage of record low rates in the five-year buy-to-let market, new data has revealed.
Lenders are offering competitive rates as they strive to secure custom from the large number of borrowers who flooded the market taking out two-year fixed mortgages in March 2016, Moneyfacts reported today.
The market saw a sharp increase in the purchase of buy-to-let homes during this time as potential landlords rushed to complete before additional 3% stamp duty surcharges were introduced for landlords in April 2016.
Now the lenders are luring in the buy-to-let borrowers who took out two-year deals and are now ready to remortgage.
Moneyfacts data showed the average five-year deal falling in March to 3.43%, which is a joint-record low for Moneyfacts. It has only ever seen rates as low for this product in October 2017.
Charlotte Nelson, finance expert at Moneyfacts, said: “Five-year fixed rates are likely to be a popular choice among landlords, as the stress test that is applied for two-year fixed rates does not apply to the five-year deals.
“This could well be one of the reasons why buy-to-let lenders have focused competition within this market.”
She added: “Despite all this good news for landlords, the market has significantly changed in two years and borrowers now have to work their way through a maze of extra regulation, as well as stricter lending requirements.”
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