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Buy-to-let fixed rates drop to lowest points since 2022

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
26/02/2024

Buy-to-let fixed rates drop to lowest points since 2022

The buy-to-let sector has seen fixed rates fall to their lowest point since September 2022, according to the latest analysis by Moneyfactscompare.co.uk.

Buy-to-let fixed rates drop to lowest points since 2022

The buy-to-let sector has seen fixed rates fall to their lowest point since September 2022, according to the latest analysis by Moneyfactscompare.co.uk.

  • Average fixed rates have fallen month-on-month, both over a two-year or five-year fixed term, standing at their lowest points since September 2022. Six months ago, these rates were the highest on Moneyfacts’ electronic records (going back to November 2011).
  • Overall buy-to-let product availability (fixed and variable) has fallen month-on-month. However, compared to six months ago, there are around 250 more options.

 

  • Average fixed rates have fallen month-on-month, both over a two-year or five-year fixed term, standing at their lowest points since September 2022. Six months ago, these rates were the highest on Moneyfacts’ electronic records (going back to November 2011).
  • Overall buy-to-let product availability (fixed and variable) has fallen month-on-month. However, compared to six months ago, there are around 250 more options.

 

Buy-to-let market analysis

Product numbers

Feb-22

Feb-23

Aug-23

Jan-24

Feb-24

BTL product count (fixed and variable)

3,540

2,246

2,585

3,114

2,838

Two-year fixed rate BTL all LTVs

1,146

539

676

968

972

Two-year fixed rate BTL at 60% LTV

111

90

67

72

70

Two-year fixed rate BTL at 75% LTV

469

271

328

416

420

Two-year fixed rate BTL at 80% LTV

149

63

67

108

120

Five-year fixed rate BTL all LTVs

1,336

865

1,107

1,324

1,215

Five-year fixed rate BTL at 60% LTV

126

103

79

83

73

Five-year fixed rate BTL at 75% LTV

578

412

558

639

588

Five-year fixed rate BTL at 80% LTV

176

56

76

102

129

Average rates

Feb-22

Feb-23

Aug-23

Jan-24

Feb-24

Two-year fixed rate BTL all LTVs

2.90%

5.95%

6.88%

5.95%

5.49%

Two-year fixed rate BTL at 60% LTV

2.07%

5.55%

6.64%

5.63%

5.22%

Two-year fixed rate BTL at 75% LTV

2.86%

5.95%

6.87%

5.94%

5.51%

Two-year fixed rate BTL at 80% LTV

3.82%

6.89%

7.54%

6.65%

6.30%

Five-year fixed rate BTL all LTVs

3.16%

5.85%

6.72%

5.91%

5.48%

Five-year fixed rate BTL at 60% LTV

2.33%

5.37%

6.18%

5.37%

4.87%

Five-year fixed rate BTL at 75% LTV

3.14%

5.95%

6.76%

5.94%

5.51%

Five-year fixed rate BTL at 80% LTV

4.03%

6.86%

7.29%

6.65%

6.20%

Data shown is as at the first available day of the month, unless stated otherwise. Source: Moneyfactscompare.co.uk

 

Buy-to-let market analysis

Product numbers

Feb-22

Feb-23

Aug-23

Jan-24

Feb-24

BTL product count (fixed and variable)

3,540

2,246

2,585

3,114

2,838

Two-year fixed rate BTL all LTVs

1,146

539

676

968

972

Two-year fixed rate BTL at 60% LTV

111

90

67

72

70

Two-year fixed rate BTL at 75% LTV

469

271

328

416

420

Two-year fixed rate BTL at 80% LTV

149

63

67

108

120

Five-year fixed rate BTL all LTVs

1,336

865

1,107

1,324

1,215

Five-year fixed rate BTL at 60% LTV

126

103

79

83

73

Five-year fixed rate BTL at 75% LTV

578

412

558

639

588

Five-year fixed rate BTL at 80% LTV

176

56

76

102

129

Average rates

Feb-22

Feb-23

Aug-23

Jan-24

Feb-24

Two-year fixed rate BTL all LTVs

2.90%

5.95%

6.88%

5.95%

5.49%

Two-year fixed rate BTL at 60% LTV

2.07%

5.55%

6.64%

5.63%

5.22%

Two-year fixed rate BTL at 75% LTV

2.86%

5.95%

6.87%

5.94%

5.51%

Two-year fixed rate BTL at 80% LTV

3.82%

6.89%

7.54%

6.65%

6.30%

Five-year fixed rate BTL all LTVs

3.16%

5.85%

6.72%

5.91%

5.48%

Five-year fixed rate BTL at 60% LTV

2.33%

5.37%

6.18%

5.37%

4.87%

Five-year fixed rate BTL at 75% LTV

3.14%

5.95%

6.76%

5.94%

5.51%

Five-year fixed rate BTL at 80% LTV

4.03%

6.86%

7.29%

6.65%

6.20%

Data shown is as at the first available day of the month, unless stated otherwise. Source: Moneyfactscompare.co.uk

 

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, 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, it is possible fixed rates will edge up slightly in the coming weeks due to volatile swap rates, so those looking to refinance may wish to secure a deal quickly to not be left disappointed.

“A notable area of volatility in the market has surrounded product choice; the overall count has dropped month-on-month, but availability is up by around 250 deals compared to six months ago. The ebb and flow of deals makes it essential for prospective borrowers to seek advice to navigate the options available to them. Deeper analysis of product choice shows five-year fixed offers have waned month-on-month, but two-year 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.

“Those who are considering the opportunity to become a landlord will find rental growth on a newly let property across Great Britain rose 8.3% year-on-year, according to a study by Hamptons, but this was the slowest pace for 13 months. However, Hamptons signalled that rental growth is expected to run ahead of inflation for the remainder of 2024. Still, there will be existing landlords concerned about the ongoing profitability of a buy-to-let portfolio as their margins have been impacted by a cull in mortgage rate tax relief, tax changes for CGT and holiday lets, plus new EPC requirements. Any investor would be wise to seek advice before they commit, and providers will need to work hard to encourage borrowers to refinance and attract new business.”

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, 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, it is possible fixed rates will edge up slightly in the coming weeks due to volatile swap rates, so those looking to refinance may wish to secure a deal quickly to not be left disappointed.

“A notable area of volatility in the market has surrounded product choice; the overall count has dropped month-on-month, but availability is up by around 250 deals compared to six months ago. The ebb and flow of deals makes it essential for prospective borrowers to seek advice to navigate the options available to them. Deeper analysis of product choice shows five-year fixed offers have waned month-on-month, but two-year 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.

“Those who are considering the opportunity to become a landlord will find rental growth on a newly let property across Great Britain rose 8.3% year-on-year, according to a study by Hamptons, but this was the slowest pace for 13 months. However, Hamptons signalled that rental growth is expected to run ahead of inflation for the remainder of 2024. Still, there will be existing landlords concerned about the ongoing profitability of a buy-to-let portfolio as their margins have been impacted by a cull in mortgage rate tax relief, tax changes for CGT and holiday lets, plus new EPC requirements. Any investor would be wise to seek advice before they commit, and providers will need to work hard to encourage borrowers to refinance and attract new business.”

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

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James Hyde Press & PR Manager
Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant