Buy-to-let rates fall by almost 1% in a year
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.â€
13 October 2011