Data from Moneyfacts revealed that average two- and five-year fixed rates across loan-to-value (LTV) bands sit at their lowest level since the September mini Budget.
Meanwhile, overall BTL product availability rose month-on-month to 3,277 and is at its highest level for over two years.
Compared to September, there is an increase of 40 five-year fixes and 47 two-year fixed rate deals.
Average rates at two-year low
Average two-year fixed rates across LTV bands have fallen from 5.57% in October 2022 to 5.24% to date, riding out a spike in October 2023, when two-year fixes rose to an average of 6.4%.
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Five-year fixed rates are also at an average of 5.24%, falling from 6.05% two years ago. Five-year deals spiked slightly at the lower level of 6.32% in October 2023.
Some of the greatest percentage point reductions lie in the 80% LTV bracket. Five-year fixed rates for those with a 20% deposit have fallen from 7.1% to 5.85% since October 2022.
Two-year fixes at 80% LTV have fallen 0.86 percentage points from 6.74% to 5.88%.
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.”
Springall added that despite positive shifts in pricing, announcements in the Budget could cause landlords to exit the market.
“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,” she said.
“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,” she added.
