Andy Young the Chief Executive of TBMC comments on the impact of the trouble in the Eurozone on BTL mortgage rates -
“During the second quarter of this year the average variable rate for offers processed by TBMC dropped to its lowest in over 18 months (4.02%), which was attributed to persistent low interest rates and improved competition in the mortgage marketplace.
However, during the third quarter there has been a small increase to the average variable rate rising to 4.10%. The average fixed rate has also increased from 4.82% to 5.03%.
“The observed rate increase is likely to be a result of continuing problems in the eurozone including the huge financial bailout for Greece. This in turn has affected the money markets and increased the price of funding. It is probable that product rates would have risen further had there not been increased competition amongst lenders in the buy-to-let mortgage market”
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