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Two- and three-year BTL fixed rate prices at record low


The price of two- and three-year fixed rate buy-to-let mortgages is at an all-time low, according to Mortgages for Business.

The firm’s January Buy-to-let Mortgage Product Index shows the average two-year fixed rate is 2.92 per cent and the average three-year mortgage rate is 3.76 per cent.

A statement from the broker says: “While this is great news for landlords who favour shorter term products, those wishing to lock into record low rates for the longer term must act quickly.

“Five-year fixed rates crept up for the second month in a row and now average 3.77 per cent, exceeding the average price of three-year fixed rates for the first time since January 2015.”

Mortgages for Business chief executive David Whittaker (pictured) says: “Longer term swaps in particular have risen in recent months, so it’s no surprise that pricing for five-year fixed rates have started to creep up.

“However, when looking at the bigger picture, these rates are still, on average, less than 1 per cent more than their shorter term counterparts.

“As such, we continue to recommend them to customers as they not only provide a longer period of security against rate rises in an uncertain market, they can also save landlords the time and money it costs in remortgaging more often.”

The index also found that January was a good month for short-term tracker products.

The average two-year buy-to-let tracker rate was 2.81 per cent, unchanged from December.



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The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.


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