Lowest rate buy-to-let products being pulled

The cheapest buy-to-let products are being withdrawn the market, now the Bank of England has started raising the base rate.

The 0.99% headline rate of a buy-to-let lender was pulled last week, with its lowest rate standing at 1.09% instead.

The Bank of England hiked the base rate from 0.25% to 0.50% at the start of the month, as it looks to control inflation which is set to reach 7.25% by April.

Indeed, four members of the Monetary Policy Committee actually wanted a higher rate rise to 0.75%.

Broker Commercial Trust told its subscribers: “Whilst pre-Christmas we saw many lenders driving down rates, to fill their loans books for the year (even though the cost of lending to them has been increasing), it is clear that now there is little option but to make rate adjustments.

“When one of the biggest lenders in the space increases rates, it is almost a certainty that others will follow, as they will be under less pressure to remain as competitive.

“You will have seen from my follow up email yesterday, that others in the space are increasing rates. Whilst others are actually dropping rates, this level of change makes for a very uncertain time, so now really is the time to secure a deal.”

Base rate hiked to 0.50%

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