Good news for landlords with buy-to-let mortgages – but strike while the iron is hot!

Money comparison website ‘Moneyfactscompare.co.uk’ has reported the lowest buy-to-let mortgage rates since September 2022 on both 2- and 5- year fixed term deals. The cost of a 2- year fixed rate buy-to-let dropped to 5.49% in February 2024 with the 5- year deal falling to 5.48%.

The amount of products currently available is considerably higher than it was 6 months ago, however this number continues to fluctuate month on month. This together with increases in swap rates, which is the fixed-rates the mortgage lenders borrow at, is likely to nudge buy-to-let rates up again in the months ahead.

Navigating the world of property investment and property management can be a challenge with multiple factors to consider. Landlords are facing increased financial pressures with a lack of mortgage-relief tax, increases in capital gains and the pending legislation requiring energy efficiency improvements. 

On the flip side rental demand remains high and rents continue to grow. Hamptons estate agents report that average rents have increased by 8.3% in the early part of 2024. This actually represents a slight slow down in growth from between 10-12% throughout most of 2023.

If you are a landlord looking to save on property management and agency fees, you could consider taking on the management of your property yourself. It might appear daunting, however with Ello’s easy to follow guide, checklists and templates, we make it easy.