Buy-to-let rates fall by almost 1% in a year

Aaron Strutt Image

Buy-to-let mortgage rates have fallen by up to 0.92% in the past year, according to research by Defaqto.

The average two-year fixed rate buy-to-let mortgage at 75% loan to value has fallen from 5.78% in September 2010 to 4.86% in September 2011, and the average arrangement fee has fallen to £2,492. The average five-year fix is now 5.69% with a £1,956 fee.

Aaron Strutt, a broker at Trinity Financial, says: “Buy-to-let rates are certainly cheaper than they were and more lenders offer incentives to take their mortgages.

"Northern Rock will give investors £500 cash back if they take out one of their two-year fixes at 3.65%.  They would require a 40% deposit and the arrangement fee is 2.5% of the loan amount.

“Godiva Mortgages has a low two-year fix rate at 3.99% with a £950 arrangement fee. The mortgage is flexible and it has a free property valuation. They do ask for a 35% deposit.”

13 October 2011

Get Started

Get started today

Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.

Google Reviews
Trustpilot
Book a Consultation Talk to an Expert
As seen in
Sunday Times Telegraph Financial Times BBC News The Express The Times