On the increase

Buy-to-let fixed rates rose in April for the first time since January, marking the end of a period of reductions.

Rates rose in April across 2,3 & 5 year terms, according to the latest edition of the Buy to Let Mortgage Product Index.

The increases mark an almost complete reversal of the falls witnessed in March, with only five-year fixed rates failing to return to their February averages, remaining 0.01 percentage point lower at 3.76 per cent.

For some time now buy-to-let mortgage lenders have been cutting rates to maintain lending volume in a sector that has been actively targeted by both the taxman and the regulator. Rates can only fall so far and figures from April suggest we may have reached the limit.

Rates for both fixed and variable products fell consistently during the first quarter of the year, with some terms witnessing even longer periods of reductions.

Between April 2016 and March 2017, the average three-year fixed rate fell from 4.5 per cent to 3.53 per cent, with each new month from June setting a new record low.

The picture for BTL variable mortgages was mixed, with rises on five and two-year tracker rates and falls on three-year variable rates and term product rates.

If you are looking for a new or re-mortgage please make contact and one of our advisers will be happy to assist.