Buy to let mortgage rates unattractive, say experts
Analysts from one price comparison website have labelled the current rates of interest being offered for buy to let mortgages and other mortgage products "uncompetitive".
According to Moneyfacts.co.uk, the average interest rate means that "there is simply no incentive at the moment for buyers to go out and get a new deal".The website's research revealed that the average standard variable rate offered for buy to let mortgage customers with a deposit of less than 25 per cent of the value of the house is 4.99 per cent.
Michelle Slade, an analyst for the site, said: "Borrowers may want to borrow and lenders may start to lend again, but unless they lower rates on new deals we are going to continue with this stalemate position."
The Bank of England has reduced the base rate of interest by 2.5 per cent in the last three months, in an attempt to persuade banks and building societies to start lending again.
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