Buy-to-let fixed rates stand at their lowest since the start of September 2022, according to the latest analysis by Moneyfactscompare.co.uk.
Average fixed rates over 2- or 5-year fixed terms fell month-on-month and have remained below 6% since the start of 2024.
These rates sit at their lowest levels since the start of September 2022, before the Truss mini-Budget.
Overall buy-to-let product availability, both fixed and variable, rose month-on-month.
Product choice is greater year-on-year, and at its highest level for over two years, standing at 3,277.
Deeper analysis showed a month-on-month rise of 40 5-year fixed deals, and a rise of 47 2-year fixed deals.
This news came as landlords brace themselves for a “painful” Autumn Budget, with many tax changes, including hikes on Capital Gains Tax (CGT) expected to be announced.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “The buy-to-let market has had its fair share of challenges over the years, so landlords might find it encouraging to see fixed interest rates have been on the downward trend.
“There are also many more deals for borrowers to choose from, as lenders have been adjusting their ranges to accommodate demand.
“These are positive signs for prospective landlords, but there are numerous other factors to consider before taking the leap into the buy-to-let sector, not just the cost of a mortgage.
“The margin of profit from rental income may well be tighter than expected, but property is still regarded as a safe long-term investment.”
Springall added: “The tax changes which have impacted the buy-to-let market have resulted in droves of landlords setting up limited companies to manage their portfolios.
“Landlords could reach breaking point if Stamp Duty relief is unwound as planned next year and those facing dwindling profits may sell up, leading to a mass exodus.
“There may then be a flood of sales, during a window of opportunity, to avoid paying a potential rate hike of Capital Gains Tax (CGT).
“Landlords will be on tenterhooks to see how the upcoming Budget will play out and lenders may remain fluid with their fixed rate pricing over the next few weeks, particularly due to volatility surrounding swap rates.”
