BTL fixed rates fall to lowest point since 2022

The analysis found, in February 2024, average fixed rates fell on both a monthly and yearly basis and now stand at their lowest point since September 2022.

Two-year fixed rate BTL fell to 5.49 per cent across all LTVs, a decrease on the 5.95 per cent that was recorded last year in February 2023, and last month.

A similar fall was discovered for five-year fixed rate BTL across all LTVs, which decreased to 5.48 per cent in February of this year.

This represented a fall from the 5.91 per cent that was recorded in January and the 5.85 per cent recorded in February 2023.

Moneyfacts finance expert, Rachel Springall, said: “Landlords concerned about interest rates may be pleased to find that both the average two- and five-year fixed buy-to-let rates have dropped to their lowest points since September 2022.

“These rates sat at a record-high just six months ago, so this is positive news for borrowers who have been patiently waiting for fixed rates to come down.”

However, Springall warned it was possible fixed rates will “edge up slightly” in the coming weeks due to volatile swap rates. 

The analysis also found the number of buy-to-let products had fallen, with 2,838 BTL products, fixed and variable, available in February 2024 compared to 3,114 in January.

However, this represented an increase on a yearly basis as there were 2,246 products available in February 2023.

“The ebb and flow of deals makes it essential for prospective borrowers to seek advice to navigate the options available to them,” Springall said.

“Deeper analysis of product choice shows five-year fixed offers have waned month-on-month, but fixed offers are resilient.

“It will be interesting to see how lenders adjust their ranges in the weeks to come. There are more two and five-year fixed mortgages now than there were six months ago.”

tom.dunstan@ft.com

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