The products dipped to a 3.40% average in October from 3.43% in the same month a year earlier and 3.55% in April this year, according to the latest figures released by Moneyfacts.
With significant change in the buy-to-let (BTL) market over the past few years, many landlords feel uncertain as to what the future holds for them and their investment.
Charlotte Nelson, finance expert at Moneyfacts, said that the BTL market has been on a rollercoaster ride in recent years, with not only two base rate rises to contend with, but multiple regulation and tax changes thrown into the mix.
She said that with all these elements many would have assumed that rates would rise as a result, but the opposite appears to be the case, particularly for the long-term fixed rates.
She added: “There has been a lot of upheaval for landlords and many are taking a step back, with the number of BTL property purchases down 11.1% year-on-year in July. In response, providers are doing their best to re-engage borrowers by making their deals more attractive, absorbing some of the cost themselves in order to keep rates low.
“As a result, competition in the BTL market remains high. In the aftermath of August’s base rate rise, many BTL borrowers will be looking to remortgage from their standard variable rates (SVRs), with several of these landlords potentially considering longer-term options to act as a buffer against any future rises. It is this extra business providers are wanting to attract.