Fixed rates on buy-to-let mortgages rose in April from their record lows, new research has revealed.
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This is according to the latest survey from Mortgages for Business, which found that rates had increased across two, three, and five year deals.
This represents the first rise this year, following a full quarter of successive rate cuts across both fixed and variable rate mortgages.
However, the survey suggests that variable rate buy-to-let mortgage rates are still falling across some term lengths.
The hike represents the first increase since April 2016 for three-year fixes, which had previously fallen for a full year, from 4.5 per cent to 3.53 per cent, touching new lows in every month since June last year.
Meanwhile three-year variables fell by 0.02 per cent in April this year, but five and two-year term rates increased by 0.02 per cent and 0.12 per cent respectively.
Have we reached a rates limit?
Mortgages for Business COO Steve Olejnik said: “For some time now buy-to-let mortgage lenders have been cutting rates to maintain lending volume in a sector that has been actively targeted by both the taxman and the regulator.
“Rates can only fall so far, however, and figures from April suggest we may have reached the limit.”
Time to remortgage?
As Simply Business reported last month, there has been an increase in the number of buy-to-let landlords remortgaging their properties.
A survey from Connells found a three per cent rise in the number of landlords locking into new mortgage deals.
John Bagshaw, corporate services director at Connells, said the move was attributable in part to new tax rules: “While buy-to-let valuations are at half the typical average for March, those who have decided to stick it out in the sector are trying to recoup the loss of mortgage tax relief.”
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