The average cost of both fixed and variable buy-to-let (BTL) borrowing is falling confirms research from Remortgages.com. The lowest fixed rate BTL is currently at the lowest level ever recorded at just 2.45% . The number of deals in the BTL sector has also risen from 757 to 811 in just one month.
These changes are part of a thriving market as lenders increasingly re-introduce competition across residential mortgage deals. This time last year there were 2,662 deals for borrowers looking for LTVs ranging from 100% to 75%, but now the number has increased to 2,943.
And as lenders loosen up after years of being risk adverse, the need to restrict borrowing to only those with high deposits or equity from previous homes has lessened with the number of restrictive 60%, 65%, and 70% and below deals declining from 1,021 to 845.
The battle to own the fixed rate market is set to continue and February has started with amazing rates, with the majority of deals at the lowest prices ever recorded.
“When you consider how dire savings rates are it is hardly surprising that BTL is proving popular with investors, and this is likely to increase once the rules relaxing the drawdown of pension pots in April come to fruition.
“Having had several years of the bank door being firmly shut to only the richest of borrowers, doors appear to not only be open but actively entice you in off the street with offers of fantastic rates.”
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