Rates on buy-to-let mortgages have reached their lowest ever levels with the bottom rate now below 2.5%, significantly lower than before the financial crisis.
- Rates on buy-to-let drop by more than two percentage points
- Lowest rate now below 2.5%
- Latest data suggests around ten million people in rented accommodation
Landlords can benefit from cheaper buy-to-let mortgages as costs have been driven to their lowest level ever, according to analysts.
The fall is attributed to a growing number of people renting city properties, with the best rate standing at 2.49%, more than two percentage points lower than it was before the financial crisis in August 2007.
It’s not just rates that are falling either, as one in ten mortgages is available without any arrangement fees, showing how the property market has changed in recent years.
The lower rates come as lenders attempt to attract new customers into the market as Britain’s rented sector continues to grow.
According to Knight Frank, roughly a sixth of the population – about ten million people – are now in rented accommodation, double the number from 2000.
Meanwhile conditions are ripe for existing landlords to boost their portfolios, with Mortgages for Business suggesting 57% of clients are looking to expand in 2014.
“The market for buy-to-let lending is extremely competitive and rates are the most competitive they have ever been,” said David Hollingworth of London and Country.
Loan to value rates for mortgage deals have also dropped by around 10% on average, although some offers do not follow this trend.