Buy-to-let fixed rates hit their lowest since September 2022, offering landlords potentially favourable financing conditions.
- Rates fell month-on-month for both 2-year and 5-year fixed terms, maintaining a position below 6% since early 2024.
- Landlords anticipate an upcoming Autumn Budget, with expected tax changes sparking concern.
- A surge in product availability has been noted, with fixed and variable buy-to-let options increasing in number.
- Experts urge landlords to consider broader factors beyond mortgage costs in light of upcoming fiscal changes.
The buy-to-let market has witnessed a significant reduction in fixed rates, with the latest figures showing these have dropped to their most attractive levels since September 2022. This decline in rates presents a potential opportunity for landlords seeking to refinance or enter the market.
Monthly reductions have been observed across both 2-year and 5-year fixed terms. Staying below the 6% mark since the beginning of 2024, these rates offer a more accessible financial environment for landlords, contrasting sharply with the heights seen in the past.
However, the approach of the Autumn Budget brings a level of uncertainty for landlords. Anticipated changes, such as increases in Capital Gains Tax, are expected to pose new challenges, contributing to a cautious sentiment within the market.
There has been a notable increase in the availability of buy-to-let products, both fixed and variable, which has expanded year-on-year, reaching its highest in over two years with a total of 3,277 options. This surge in choices indicates an adaptation by lenders to meet rising demand.
Finance expert Rachel Springall remarks that while lower mortgage rates are encouraging, landlords must weigh other considerations. “There are numerous other factors to consider before taking the leap into the buy-to-let sector, not just the cost of a mortgage,” she asserts. The narrowing of rental income margins is a particular point of concern, despite property maintaining its standing as a secure long-term investment.
Landlords remain on edge as they anticipate the fiscal implications of the forthcoming Budget amidst an evolving mortgage landscape.
