Average Buy To Let mortgage rates drop
Huw Jones - Sales & Lettings Director
The research sourced from 754 buy to let applications, revealed the average chosen fixed-rate was 4.82% during the second quarter of 2011, down 0.18% from 5.00% during the first three months of this year.
The average chosen tracker rate was 4.02% during the second quarter of 2011, down 0.18% from 4.20% during the first three months of the year.
Andy Young, chief executive at TBMC, said: “The index shows that average rates fell during the second quarter of this year, following the rise in the previous quarter. This reflects the weight of opinion in the City that any rise in the Bank of England base rate is likely to happen much later in the year than previously expected, and perhaps not until 2012.
“The expectations of the City regarding interest rate rises are mirrored by the product choice of buy-to-let property investors during Q2, with variable rate products accounting for 59% of applications received by TBMC compared with 41% for fixed rates.
“Variable rates are also popular amongst landlords as they often present the most achievable rental calculations in the marketplace.”
Huw Jones, Sales & Lettings Director at Shaws Estate Agents said: “We have seen greater competition between lenders in the mortgage market in recent months resulting in more attractive deals for borrowers. This is true in both the homeowner and buy to let market and shows the need for anyone considering taking a mortgage or re-mortgaging to take professional advice."
