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Costs of Five-Year Fixed Rate Buy-to-Let Mortgages Fall from 2018
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
New research has revealed that the costs of certain buy-to-let mortgages have fallen.
After a spike during the months of February and March, it has been noted that some popular five-year fixed rate buy-to-let mortgages have seen a drop in fees. Many of these are now cheaper than they were a year ago in April 2018.
This research, from online mortgage broker Property Master, also shows that product fees for such mortgages have increased, sometimes by as much as £335.
The cost of five-year fixed rate offers for 50% of the value of a property fell by £8 a month between March and April, according to Property Master’s April 2019 Mortgage Tracker. Year-on-year, this type of mortgage was down in cost by £28 a month.
The tracker also shows that the cost of a five-year fixed rate for 65% of the value of a property fell by £4 each month, and by £18 per month, when compared to year-on-year data from April 2018.
Five-year fixed rates for 75% of the value of a property stayed at £408 March to April, but fell year-on-year by £18 a month.
However, a sharp year-on-year increase in average product fees can be seen for almost all of the available fixed-rate buy-to-let mortgages categories that were tracked.
Fees for a two-year fixed rate for 50% of the value of a property saw major growth, from £714 in April 2018 to £1,599 today – an increase of £885.
On top of this, five-year fixed rates for 50% of the value of a property, which increased by £335 in April 2018 to today, from £1,164 to £1,499.
Figures for this month’s Mortgage Tracker were calculated on deals available on 1st April, 2019.
Angus Stewart, Property Master’s Chief Executive, commented: “It is good news that the type of deals many landlords favour have fallen back a little in cost after last month’s increase. Better still the headline rate for many of these offers are actually less than they were a year ago.
“However, there is something of a catch in the increase in many product fees. Applying for a buy-to-let mortgage can be a complex process and it is important landlords compare the total cost of the mortgage they are offered.”
