Buy-to-let mortgage interest rates 'have decreased'

Date:Thursday 20th May 2010
Author: Max Freedman

Potential landlords may be pleased to hear new opportunities could be on the horizon as a result of a reduction in the interest rates of buy-to-let mortgages and an increase in the amount available, according to

Spokesperson for the website Darren Cook claimed "competition has returned to the market" and highlighted how the loan-to-value offered by lender has also increased.

The company revealed there are 304 buy-to-let products available on the market - up from 179 in September 2009 - while the average interest rate on a two-year fixed deal has fallen from 5.96 to 5.66 per cent during the same time.

However, Mr Cook warned: "Predicted changes to capital gain tax could put the recovery of the buy-to-let sector off track."

This view was echoed recently by the National Landlords Association, which said it remains to be seen what impact an increase to this levy could have on landlord confidence.