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Buy to Let Mortgage Rates – August 23 Round up

Buy to let mortgage rates have continued to rise in August 2023, as the Bank of England has kept the base rate at 5.25%. This is the highest level since 1990, and is expected to continue to put upward pressure on mortgage rates.

As a result of rising interest rates, buy to let landlords will face higher monthly mortgage payments. This could impact their profitability, and may make it more difficult for them to afford to invest in new properties.

However, there are still some attractive buy to let mortgage deals available, and landlords who shop around and compare a range of deals should be able to find a competitive option.

Here is a look at the current state of buy to let mortgage rates in the UK in August 2023:

  • The average two-year fixed rate buy to let mortgage is currently 5.79%.
  • The average five-year fixed rate buy to let mortgage is currently 6.29%.
  • The average variable rate buy to let mortgage is currently 5.49%.

It is important to note that these are just average rates, and the actual rate you will be offered will depend on your individual circumstances.

If you are considering investing in buy to let property, it is important to factor in the cost of borrowing when making your decision. You should also consider the other costs associated with being a landlord, such as maintenance and repairs, void periods, and letting agent fees.

Rising interest rates are a challenge for buy to let landlords, but there are still some attractive mortgage deals available. By shopping around and comparing a range of deals, landlords can find a competitive option that meets their needs.

Here are some tips for finding the best buy to let mortgage:

  • Speak to a mortgage broker who can compare deals from a range of lenders.
  • Use a mortgage comparison website to compare deals yourself.
  • Research different lenders directly.
  • Consider your individual circumstances when choosing a mortgage.
  • Lock in a fixed rate mortgage to protect yourself from rising interest rates.

If remortgaging many lenders are also requesting for evidence of your due-diligence for current tenants, to reduce the risk of non-rental payments. Therefore, please ensure that you have your tenancy referencing and right to rent documentation to hand. We also recommend that a basic credit check is conducting on all existing tenants when renewing a tenancy to ensure that they have not obtained any adverse credit since moving into your property such as CCJ’s, IVA’s or bankruptcy. To find out more about our screening products please visit Referencing – Services from Tenant Screening

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