In April 2016, the government introduced a Stamp Duty 3% surcharge on homeowners who wish to buy a second property and this combined with future tax increases, may have led to a general reluctance of home buyers to pursue the once popular Buy to Let. Not so.

Whilst, it is true that a surge of Buy to Lets went through prior to the Stamp Duty surcharge being implemented, it is also true that lenders have worked hard to maintain interest in Buy to Lets. To avoid the slump and to continue to secure business, lenders have acted quickly to reduce fixed mortgage rates to keep the Buy to Let market alive and thriving.

It has been reported that the 2 and 3 year fixed rate for Buy to Let fell to 2.92% and 3.76 respectively. In addition, recent figures from Moneyfacts shows that the average 5 year fixed Buy to Let rate fell from 9.22% to 3.86% over the whole of 2016.
This is good news for those who are looking for shorter term products or for those who want to lock into the record low rates.

The low rates have meant that many are still looking at obtaining a Buy to Let as they see this as a safe long term investment for them. It has been widely estimated that over £ 3 billion has been paid out in cash lump sum withdrawals from pension pots following the Governments relaxation of rules regarding withdrawals from pensions. There is evidence to show that many are opting to re-invest that cash into second homes as an investment opportunity. With the current record low Buy to let fixed mortgage rates-who can blame them?