In an article in which the Guardian had published on the 11 April they stated that Buy-to-let landlords are continuing to benefit from falling mortgage rates, according to new data, despite policymakers saying they are keeping a close eye on the fast-growing sector.

They had also stated that data from finance website Moneyfacts shows that the average rate on a two-year fixed rate buy-to-let (BTL) mortgage has fallen from 5.21% in 2011 to 3.32% now, and rates on five-year fixed rates are down from 6.24% from 4% over the same period.

“Savings rates are currently so poor that many are looking elsewhere to fund their retirement, so lenders have tried to capitalise on this new pool of cash by offering some of the best rates the BTL sector has ever seen,” said Charlotte Nelson, finance expert at Moneyfacts.

The Bank of England announced last month it was setting out a number of measures to combat risks to the financial system from the buy-to-let sector, which included assessing the borrower’s costs associated with letting the property and the impact of future interest rate increases in affordability assessments.

It announced the measures after data for January showed the number of loans granted to would-be landlords increased 22%. The increase in borrowing was said to be fuelled by changes to stamp duty which were announced in November to come into force this month. Anyone buying a home that is not their main residence must now pay a 3% stamp duty surcharge.

 

Source:http://www.theguardian.com/money/2016/apr/11/buy-to-let-landlords-keep-benefiting-from-cheaper-mortgages  12/04/2016