The BTL market has seen fixed rates move to the lowest point since September 2022, according to analysis by Moneyfactscompare.co.uk.
Both two-year and five-year fixed term rates fell month-on-month with MoneyFacts stating its records — which go back to November 2011 — said rates were at their highest six months in August 2023 at 6.88%.
In February 2024, two–year fixed rates fell to 5.49% from 5.95% in January of this year, which was also the same figure from February 2023.
Meanwhile, five-year fixed rates were at 5.48% in February 2024, a fall from 5.91% in January of this year with a fall from 5.85% in February 2023.
However, while rates may have fallen, so too has product choice in the past month, according to Moneyfacts, with overall product count, of fixed- and variable-rates, falling to 2,838 in February of this year, a decline from 3,114 in January 2024.
However, product numbers fluctuated in February of this year in comparison with previous Februarys, such as 2023, where the product numbers were 2,467 and February 2022, when they stood at 3,540.
The number two-year fixed rate products rose in February 2024, compared with the previous month, from 968 to 972 and had risen from 539 in February 2023 to the same month of this year — however they were still down from 1,146 in February 2022.
Five-year fixed products fell between January and February of this year from 1,323 to 1,215, as well as from February 2022 (1,336) but rose from 865 in February of 2023.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Landlords concerned about interest rates may be pleased to find that both the average two- and five-year fixed BTL rates have dropped to their lowest points since September 2022.
“However, it is possible fixed rates will edge up slightly in the coming weeks due to volatile swap rates, so those looking to refinance may wish to secure a deal quickly to not be left disappointed.”
