Buy-to-let rates have dropped to their lowest point since the start of September 2022, data from Moneyfacts has revealed.
The data showed two-year buy-to-let fixed rates across all LTVs fell to 5.24 per cent in October 2024, the lowest level in over two years.
A similar trend was observed among five-year fixed rates which also fell to 5.24 per cent.
This represented the continuation of a steady downward trend in buy-to-let rates which have fallen month-on-month and remained below 6 per cent since the start of 2024.
Moneyfacts finance expert, Rachel Springall, stated: “The buy-to-let market has had its fair share of challenges over the years, so landlords might find it encouraging to see fixed interest rates have been on the downward trend.
“There are also many more deals for borrowers to choose from, as lenders have been adjusting their ranges to accommodate demand.
“There are positive signs for prospective landlords, but there are numerous other factors to consider before taking the leap into the buy-to-let sector, not the cost of a mortgage.
“The margin of profit from rental income may well be tighter than expected, but property is still regarded as a safe long-term investment.”
However, Moneyfacts cautioned this could all change later in the week as the upcoming autumn Budget, which will be delivered tomorrow (October 30), could reveal “tax raids” on landlords.
“Landlords will be on tenterhooks to see how the upcoming Budget will play out and lenders may remain fluid with their fixed pricing over the next few weeks, particularly due to volatility surrounding swap rates,” Springall stated.
“Any borrowers concerned about their present situation would be wise to seek independent advice if they need support or indeed to navigate the latest deals if they are due to refinance in the next few months.”
Despite this uncertainty, the data identified some more positive news for the buy-to-let market, pointing out that product availability had reached its highest level since June 2022.
Moneyfacts showed the buy-to-let product count reached 3,277 in October 2024, rising from the 3,186 that was recorded in September.
This also represented an increase on a yearly basis, rising from the 2,581 products that was recorded in October 2023.
tom.dunstan@ft.com
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