Mortgages for Business

Five-year fixed BTL rates continue to slide

The pricing of five-year fixed rate buy-to-let mortgage products has continued to decline in the first quarter of 2018, a new study has shown.

The Buy to Let Mortgage Index published by Mortgages for Business has revealed that the average pricing of rates for landlords borrowing via limited companies also fell, except on five-year fixed rates, which increased from 4.2% to 4.3%.

The number of lenders offering products to corporates was unchanged at 16, but the number of products available increased by 1%.

Nearly one-fifth of all products (19%) had no lender arrangement fee in Q1 2018, while 39% had flat fees charged at an average of £1,441.

David Whittaker, chief executive officer at Mortgages for Business, said: “Change has been the only constant in the buy-to-let market in recent years, so we felt it was time to take a more holistic approach to tracking and analysing industry developments.

“While the current picture shows that lenders and landlords have much to accommodate, the data reveals that slowly, both are moving towards solutions which should keep buy-to-let a popular, if less prolific, investment in the years to come.”

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