Buy-to-Let landlords are enjoying a fall in mortgage rates, according to recent reports, particularly those looking for longer-term fixed rates. Research from the financial information provider has shown that not only have five-year fixed rate deals fallen to all-time lows, the average fixed rate at 75% loan-to-value (LTV) has fallen by 0.49% in just six months, dipping below 4.00% for the first time ever. The average five-year fix for borrowers with a 25% deposit is now 3.96%, and just 3.48% at 60% loan to value for landlords with larger deposits. The reduction in the Bank of England Base Rate to 0.25% has already affected buy-to-let rates, with the average five-year fixed rate at 70% LTV falling by 0.15% in just one month. In fact all LTVs for five-year fixed rates have reached the lowest in the market this month. Whilst the costs of obtaining a BTL mortgage are being driven down, there are other costs to factor in, such as the stamp duty surcharge that was introduced in April this year and the tax relief changes that are coming into play next year. As five-year fixed rates get ever lower, and with more calls for longer-term tenancy agreements, we could perhaps see a shift in the focus of the buy-to-let landlord whereby the investments become a more long-term prospect.
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