Lenders compete for BTL mortgage business

April 12, 2016

Buy-to-let mortgage rates are being slashed to record lows in an effort to keep the market alive following the continued efforts by the Chancellor George Osborne to keep the buy-to-let boom under control.

In fact these efforts by the Chancellor appears to have  triggered what might be called a ‘price war’ as lenders compete to attract new business.

Charlotte Nelson, Finance Expert at Moneyfacts.co.uk reportedly said:  “The BTL market has faced intense pressure recently, but despite this, rates have continued to fall across all fixed rates. For example, the average two-year fixed rate has fallen by 0.71% in just two years, while the average five-year fixed rate has dropped by an equally significant 0.76% over the same period.

“A year on from pension freedoms and almost £3bn has been paid out in cash lump sum withdrawals, so it’s highly likely that some of this money has been accessed with BTL in mind.

“Savings rates are currently so poor that many are looking elsewhere to fund their retirement, so lenders have tried to capitalise on this new pool of cash by offering some of the best rates the BTL sector has ever seen. In addition, providers also cut rates in the run-up to the stamp duty changes in order to attract those keen to buy before they were implemented, which has further aided the downward slide in rates.

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Home and Living

2026’s Fastest-Growing Bathroom Trend Is the Wet Room

“Wet rooms have become one of the standout bathroom upgrades of 2026, moving from luxury extra to everyday renovation choice as more homeowners prioritise space, style and easy cleaning. The momentum is only building as spa‑style bathrooms stay in demand.” “Wet rooms used to be a niche request,” says Ant Langston, Marketing Manager at Heat…
Read More →
Home and Living

Homebuyers could cut energy bills by £400 a year

As the energy price cap keeps rising, the latest research from Yopa reveals that buying a new-build home could save homebuyers as much as £450 a year on their energy bills. With the energy price cap forecast to increase again over the coming year, many households are preparing for further pressure on their finances as…
Read More →
Breaking News

Zoopla House Price Index Reaction

The latest index from Zoopla shows that: – First-time buyers are targeting homes worth £10,000 more than a year ago, with average prices up 4.3% to £254,750 – nearly 3x the rate of UK house price growth There are 6% fewer first time buyers in the market than this time last year, but those that…
Read More →
Breaking News

First-time buyers target homes worth £10,000 more

Housing market activity is holding up in the face of uncertainty, though with fewer buyers than a year ago the outlook remains finely balanced.   First-time buyers are targeting homes worth £10,000 more than a year ago, with average prices up 4.3% to £254,750 — nearly 3x the rate of UK house price growth There…
Read More →
Home and Living

The garden upgrades that can add the most value

The garden upgrades that can add almost £9K to your home’s value this summer   With summer traditionally one of the busiest periods for the property market, new research from Yopa reveals that adding a garden room or home office could boost the value of the average UK home by almost £9,000 after costs, making it…
Read More →
Breaking News

Property values climb in Q1

The latest Property Market Index Review by London lettings and estate agent, Benham and Reeves, has revealed that the property market lost momentum during the first quarter of 2026, with house prices showing signs of recovery following the previous quarter’s fall.   The Benham and Reeves Market Index Review The Benham and Reeves Property Market Index…
Read More →