Buy-to-let mortgage rates have fallen in the last year, but remain significantly higher than residential mortgages, research firm Defaqto has found.
It has established that as well as average interest rates having fallen significantly in the last year across all types of buy-to-let mortgage, average arrangement fees have also generally fallen.

Meanwhile, Defaqto analysis shows that average interest rates and arrangement fees in the buy-to-let mortgage market remain significantly higher than for their equivalent residential mortgages.

The firm says, for example, that the average rate for a regular two-year fixed rate mortgage is currently 3.52% with an average arrangement fee of £844. For a five-year fixed rate mortgage the respective figures are 4.25% and £727.

David Black, Defaqto’s insight analyst for banking, said: “For those looking to get into the buy-to-let market