It isn’t very often we hear good news about the BTL property market. It’s usually full of gloom and reporting more tweaks to regulations, expense for owners, price volatility, mortgage refusals, Brexit uncertainty. All seemingly an endless stream of misery. This month, it was reported that several lenders dropped their BTL mortgages rates while others started offering perks. That means much cheaper mortgage deals which should slow down the number of property owners selling up and exiting the market.

Why Are Rates Dropping Now?

There is finally some relief and something to feel positive about as far as the buy to let market is concerned. The industry has undoubtedly been tougher, not least of all because of a series of tougher and more stringent checks. The phasing out of tax relief on BTL mortgage interest has hit pockets hard. New expenses incurred are associated with tougher regulations such EPCs, and of course tightening up fire and electrical restrictions, among other things.

How Much are Rates Dropping?

The first to change their rate was Halifax Building Society. Some deals had BTL rates drop by as much as 0.45%. Nationwide was next, emulating similar discounts as those on offer from Halifax. Then Barclays decided to offer some good deals. Rate changes included a deal dropping from 1.59% to 1.55% on a two-year fixed-rate mortgage. This was conditional on a 40% deposit for their BTL mortgages. For 25% mortgage deal, rates were cut from 1.88% to 1.83% for a five-year fixed term.

On average, 40% tracker BTL mortgages are 3% cheaper than they were in the spring. Similarly, a 30% deposit buy to let tracker is 2% cheaper. In real terms, this means with a £150k mortgage, a BTL landlord will save £234 on average.

Will it Reverse the Decline?

The new deals from the top providers were quickly followed up by other providers. The race shows no signs of abating right now. Just this week, BTL specialist provider Accord Buy To Let dropped their 40% mortgage deals from 2.49% to 2.42%. The move has been welcomes by the industry. Some have noted the lack of interest of new BTL property owners entering the market. That has been as worrying to the lenders as it is to the landlords and industry analysts.

However, instead of focusing on new BTL property ownership, the focus is aiming at those looking to re-mortgage to fund their business expansion plans. By helping those doing well to continue to expand, it may just turn around the slowing of the market. Industry analysts say there is now a record number of deals, over 1,400 available to new owners too.

The advice is to shop around for a good deal if you’re looking to expand. Some offer cashback deals and free evaluations.