Average two and five-year fixed rates are now available at 2.95 per cent and 3.3 per cent respectively following falls of 0.04 per cent and 0.05 per cent since the beginning of May.
Interest rates for landlords have not been this low since January when average two-year fixed rates were 2.89 per cent and average five-year fixed rates stood at 3.27 per cent.
The largest reductions in May have been in the 65 per cent loan to value (LTV) tier where two-year fixed rates have now fallen to 2.68 per cent and five-year fixes are 3.17 per cent on average.
For landlords with a 20 per cent deposit, two-year fixed rates have risen from 4.06 per cent in April to 4.2 per cent on average. Those wishing to fix for longer will have seen a slight reduction in five-year fixes with the average rate falling 0.04 per cent to 4.35 per cent.
Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “Our latest research shows that landlords searching for a deal may be very pleased to see that the overall two and five-year average fixed rates for all LTVs have dropped to the lowest levels since the start of this year, with both having fallen further in the first 21 days of this month.
“This seems to show an appetite for business from lenders to cater to borrowers who are keen to invest. Indeed, as providers continue to tweak their ranges, we have seen rate reductions of as much as 0.90 per cent from TSB, while Virgin Money made cuts of up to 1.06 per cent on a selection of its products this month.”