Buy To Let mortgage rates could rise in coming weeks – new fear

Buy To Let mortgage rates have crept up since the Autumn Budget, a specialist lender says – and they could rise further if the Bank of England doesn’t itself announce a cut in two weeks’ time.

Octane Capital has analysed current BTL mortgage rates and changes seen over the last year.

In the run up to the Budget in October the average mortgage rate for a two year fixed-rate buy-to-let mortgage (75% LTV) had been falling, down from 4.83% in March to 4.22% in October.

In November this increased to 4.28%, before reducing very slightly to 4.26% in December.

However, the average 4.26% seen in December of last year was still considerably lower than the same month of the previous year when it sat at 5.40%.

In fact, the analysis by Octane shows that on average in 2024, the average buy-to-let mortgage rate was 4.53%. This is compared to an average rate of 5.47% seen over the course of the previous year (2023).

This reduction in buy-to-let mortgage rates has been driven by the swap rate market.

Throughout 2024, the average one year swap rate sat at 4.81%, down from 5.25% in 2023. At the same time, the average five year swap rate came in at 4.16%, down from 4.52% in 2023. Read the full article > Landlord Today