Choice of buy-to-let mortgages rises to a record high
Fixed and tracker rate mortgage availability in the buy-to-let market has reached a record high, with the average two-year fixed rate having dropped below 5% for the first time since September 2022. This is according to the latest analysis by Moneyfactscompare.co.uk.
Overall buy-to-let product availability (fixed and variable rate) rose to 4,144 deals, its highest count on Moneyfacts records. Deeper analysis shows a larger quantity of five-year fixes versus two-year fixed deals.
Average buy-to-let fixed rates over two- or five-year fixed terms overall fell month-on-month, for the fourth consecutive month. The average two-year fixed rate is at its lowest point since September 2022, whereas the average five-year fixed rate is at its lowest point since October 2024.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said: “Landlords must ensure their property has a minimum Energy Performance Certificate (EPC) rating of C, by 2030 at the latest, according to the Government’s latest proposals. This is why a buy-to-let investment might not work for accidental landlords who are not able to fork out the costs to make renovations."
In addition to the potential changes landlords need to make to their properties to increase energy efficiency, there are also tax changes that have priced many landlords out of the market. Other landlords have been forced to sell up or take out a limited company buy-to-let mortgage.
Demand for property is not slowing down
Despite the challenges in the buy-to-let market, there remains a significant demand for property, which is unlikely to subside anytime soon. With England’s population projected to grow by more than 6 per cent over the next decade, according to the latest figures from the Office for National Statistics, more rental properties will be needed.
Call Trinity Financial on 020 7016 0790 to secure a buy-to-let mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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