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Buy-to-Let Mortgage Rates Hit Two-Year Low

In a significant development for the buy-to-let sector, fixed mortgage rates have descended to their lowest level since September 2022, as reported by This trend marks a moment of relief for landlords, who have seen rates fall for both two-year and five-year fixed terms, contrasting sharply with the record highs recorded just six months ago, the highest since Moneyfacts began its electronic records in November 2011.

Despite a slight month-on-month decrease in the overall availability of buy-to-let products (encompassing both fixed and variable options), the market now offers approximately 250 more choices than it did half a year ago.

Rachel Springall, a finance expert at, shared her insights: “Landlords concerned about interest rates will be encouraged to see the average two- and five-year fixed buy-to-let rates at their lowest since September 2022. This decline is particularly significant given the record-high rates observed six months ago. However, with the potential for slight increases due to fluctuating swap rates, borrowers keen on refinancing should act swiftly to secure a favorable deal.”

Springall further highlighted the market’s volatility, especially in product availability, noting a recent drop but an overall increase in options compared to six months earlier. She pointed out, “The dynamic nature of the market, with a recent dip in five-year fixed offerings but stability in two-year fixed deals, underscores the importance of professional advice for borrowers.”

The analysis also touches on the broader buy-to-let landscape, referencing a study by Hamptons that showed an 8.3% year-on-year increase in rental growth for newly let properties across Great Britain, albeit at the slowest pace in 13 months. Hamptons predicts rental growth will continue to outpace inflation throughout 2024.

Springall concluded with a cautionary note for prospective landlords and a call to action for lenders: “Given the challenges posed by changes in mortgage rate tax relief, capital gains tax, holiday let taxes, and new energy performance certificate (EPC) requirements, it’s crucial for investors to seek advice. Meanwhile, lenders must strive to offer competitive refinancing options and attract new clientele.”


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