Fixed rate mortgages took another fall in the last quarter of 2012. Research conducted by TBMC, the buy-to-let mortgage company, showed the average fixed-rate buy-to-let mortgage standing at 4.67% down from 4.88%.
Loan-to-value rates rose again to 73.11%, primarily as a result of increasing competition in the buy-to-let mortgage market. According to TBMC there are now 27 different lenders offering them.
Andy Young, chief executive of TBMC, said: "This significant uplift has been reflected in a greater choice of products being offered by a wide range of lenders. In fact TBMC placed buy-to-let mortgage business with 27 different lenders during 2012."
"Generally speaking, the expansion of the buy-to-let market has led to greater competition between providers and as a result there are some very good deals currently available. What is notable about the last quarter is the trend for lower fixed rates, with the average buy-to-let fixed rate mortgage offer processed by TBMC at 4.67%, down from 4.88% in the previous quarter.
"This suggests that the government's fiscal measures, including the Funding for Lending Scheme, are enabling lenders to offer lower interest rates to borrowers, and may also reflect falling swap rates during Q4 2012."