Buy-to-let mortgages that track the Bank of England base rate may now represent better value than fixed rates, according to broker Commercial Trust.
The broker highlights that it can secure applicants tracker and discounted rates at a relatively cheap level, even in this environment of rapidly rising rates.
For example there is a 2-year tracker which currently stands at 2.89% with a £1,995 product fee, as well as a lifetime tracker at 1.75% above the base rate to 75% LTV with a 2% fee.
Andrew Turner, chief executive of Commercial Trust, said: “A short term variable rate product may now offer a more cost effective solution than some of the fixed rates available.”
He added: “House prices have been falsely elevated for some time, but in the news this week Halifax are reporting a decrease in September.
“I know some landlords have been waiting for the heat to drop out of property prices, before making their next investment, we will be monitoring the situation and I will keep you informed.
“There are a number of factors creating a push-pull on house prices, and as a result the direction of travel in the short term is not yet clear. But, as I have said in previous correspondence, I do expect a fall in house prices over the next 12-18 months.”
