Fixed rates rising but don’t despair
If you’ve read the headlines you’ll be aware that buy to let fixed rates are creeping up.
In April two, three and five year fixes all began to move upwards. Now, we all know the press is keen to talk down the buy to let market at whatever chance it gets, so naturally this news is being billed as yet another blow for landlords. But don’t despair. This is not the bad news it’s made out to be.
Firstly, the reason rates are creeping up is because they have already fallen so much. Lenders slashed rates to attract business following the challenges in the market of late. Those rates could only ever fall so far. Secondly, rates are still extremely competitive and tracker rates continue to fall in some cases. And finally, if lenders are willing to increase rates it means they’re no longer desperate for business, they’re getting business – indeed, buy to let is alive and well.