Buy-to-let mortgage rates fall as lender competition hots up
The average fixed buy-to-let mortgage rate fell again in the last quarter of 2012, according to buy-to-let specialist TBMC.
The average was 4.67%, down from 4.88% in the previous quarter. By comparison, the average variable rate product was priced at 4.42% in the last quarter.
The fall means that the difference between fixed and variable rates is now at its lowest for over two years.
Meanwhile, deposit requirements are also falling.
The average LTV was 73.11%, up from around 65% a year earlier, and pushing the average buy-to-let loan size up by £17,815 to £156,661 during the last year.
Andy Young, chief executive of TBMC, said: “This significant uplift has been reflected in a greater choice of products being offered by a wide range of lenders. In fact, TBMC placed buy-to-let mortgage business with 27 different lenders during 2012.
“Generally speaking, the expansion of the buy-to-let market has led to greater competition between providers, and as a result there are some very good deals currently available.
“What is notable about the last quarter is the trend for lower fixed rates, with the average buy-to-let fixed rate mortgage offer processed by TBMC at 4.67%, down from 4.88% in the previous quarter.”