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Mortgage rates fell by over 40% in buy-to-let investments

Drop in buy-to-let interest rates

New data released today by Mortgage Brain has shown that during 2014 some buy-to-let mortgage rates fell by over 40%.

The latest figures have revealed that the interest rate for a two year Tracker with a 60% LTV is now 41% lower compared year-on-year – down to 0.99% from 1.69%.

Additionally, the rate for the same product dropped by 32% during 12 month previous. This means the product is now available with a rate that is 73% lower than it was two years ago.

A 32% rate drop has also been recorded for the lowest rate two year Tracker with a 90% LTV, which is currently listed at 2.45%, down from 3.59% in January 2014.

Five year term products also saw some major rate movement over the past 12 months – good and bad. The lowest rate five year Fixed mortgage with a 90% LTV, for example, fell 24% from 4.29% to 3.24%.

Rate drops were also seen in the Buy-To-Let market with the lowest rate three year Tracker (60% LTV) now 17% lower than this time last year – down from 3.49% to 2.89%. Similarly, the lowest rate three year Fixed mortgage with a 60% LTV is now 16% lower (down from 3.49% to 2.94%), and the lowest rate two year Tracker (80% LTV) down 15% from 4.29% to 3.65%.

Increase in demand for student property investments

Mish Liyanage from Mistoria Group had this to say: “The drop in mortgage rates is welcome news to a lot of today’s buy to let investors or those currently looking at investing in the property market. We have seen a surge in our high yielding student buy to lets. With the majority of forecasters predicting a rise in base rates in 2015 it will be interesting to see what actually happens, and which way things move, over the course of the next 12 months.”

The Mistoria Group is a one-stop- property solution for first-time buyers, property investors and landlords offering cash yields in excess of 13%, in high yielding buy-to-lets. We also specialise in refurbishments and provide property management. For more information on our current available property investments and the services we offer email us at info@mistoriagroup.com or call us on 0800 500 3015.

 

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