Buy-to-Let Mortgage Rates Hit Record Low
Buy-to-let borrowing is currently at the lowest level ever recorded.
According to the latest data from Moneyfacts, the average buy-to-let borrowing is currently at a rate of 3.82 percent across all terms - and the number of deals in the sector has also risen from 757 to 811 over one month.
Past data reveals in February 2014 the buy-to-let rate was 4.22 percent, in February 2013 it was 4.68 percent and in February 2012 it was 5.03 percent.
Moneyfacts also explained that as lenders loosen up after years or risk aversion, the need to restrict borrowing to only those with high deposits or equity from previous homes has lessened, with the number of restrictive at 60 percent, 65 percent and 70 percent and below deals declining from 1,021 to 845.
Recent data released from the Council of Mortgage Lenders revealed that, due to a variety of funding sources which have enabled lenders to raise capital at ‘exceptionally low cost’, fixed rates and trackers are at record lows.
In its latest news and views publication, the industry body pointed out that its regulated mortgage survey showed last November the average new tracker mortgage rate fell to 1.96 percent - the first time that it has ever dipped below two percent.
It’s a similar picture for fixed-rate borrowers, with some lenders offering the ‘lowest long term’ rates the market has ever seen, the Council of Mortgage Lenders (CML) said.
The report has confirmed that UK property remains a good investment option and as the economy strengthens property will continue to underpin the growth in the UK*
Source *: Financial Times
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