Buy-to-let mortgage rates are increasing as lenders adjust to rising swap rates, according to research. Moneyfactscompare.co.uk reports that the average two-year fixed buy-to-let rate has risen to 5.32% from 5.29% on 1 September. Similarly, the average five-year fixed rate now stands at 5.70%, up from 5.66%.
Several providers have repriced or withdrawn deals. HSBC increased its buy-to-let rates by up to 0.16% yesterday, while NatWest raised rates by 0.10% on Saturday and up to 0.25% through its intermediary arm. Coventry Building Society has increased rates by up to 0.20%, and Leek Building Society by up to 0.13%.
Rachel Springall, a finance expert, stated that pricing margins among major lenders are under pressure due to renewed volatility in the swap rate market. She added that the recent uplift in swap rates has started to affect fixed-rate mortgage pricing, with more changes anticipated in the coming days.
Family Building Society withdrew its fixed buy-to-let range on 4 September and it has not yet returned. Limited edition products from CHL Mortgages and ModaMortgages were also withdrawn on 3 September. Moneyfacts suggests further changes are likely in the next few days as lenders adapt to higher wholesale funding costs.