At the start of July, 2,709 buy-to-let mortgages were available, 971 deals higher than this time last year when lenders had already begun limiting their product choice as the pandemic set in.
For landlords looking to remortgage from a two-year deal secured in July 2019 they can now lock into a new mortgage at a lower rate than two years ago.
The average two-year fixed rate stands at 2.98 per cent, 0.02 per cent higher than June but 0.03 lower than July 2019. Average five-year fixed rates have also fallen since July 2019 from 3.50 per cent to 3.28 per cent this month.
Average rates for both two and five year fixed deals are both priced higher than they were in July 2020.
Eleanor Williams, finance expert at Moneyfacts, said: “Due to the influence of the pandemic, interest rates for buy-to-let have climbed year-on-year with the overall two and five-year average interest rates of 2.98 per cent and 3.28 per cent being 0.37 per cent and 0.31 per cent higher respectively than a year ago, but this may be linked to the increase in availability of higher loan to value (LTV) products.
“These higher LTV deals usually charge a higher rate and can therefore impact these averages. However, despite creeping up a further 0.02 per cent month-on-month, what is positive is the fact that the overall two-year fixed rate is lower now than in June 2019. This means those coming off a two-year fixed deal may still find a better deal, depending on how much they have in equity and their circumstances.”
