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Fixed Rate Buy-to-Let Mortgage Costs Fall Month on Month
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The latest research from Property Master shows an ‘unprecedented’ drop in the cost of fixed rate buy-to-let mortgage costs.
Information from the online mortgage broker’s July 2019 Mortgage Tracker has revealed the biggest decrease recorded for monthly costs to be for five-year fixed rate buy-to-let mortgage products offering 5% loan-to-value (LTV).
Based on deals available on July 1st 2019, the following changes were noted:
- The monthly cost for five-year fixed rate buy-to-let mortgage products offering 5% loan-to-value fell by £36 per month between June and July.
- Five-year fixed rates for 65% of the value of a property fell month on month by £6.
- Five-year fixed rate buy-to-let mortgage offers for 75% of the value of a property dropped by £3 per month.
- Two-year fixed rate buy-to-let mortgages for 50% and 65% of the value of a property fell by £5 each per month
- Two-year fixed rate buy-to-let mortgages for 75% of the value of a property fell by £8 per month.
Property Master’s Mortgage Tracker follows a range of buy-to-let mortgages for an interest-only loan of £150,000. It monitors deals from 18 lenders in the buy-to-let market, including names such as Barclays, BM Solutions, RBS, The Mortgage Works, Godiva and Precise.
Angus Stewart, Chief Executive of Property Master, commented: “We have been tracking buy-to-let mortgage interest rates in this way for 18 months and we have never seen before a fall across the board in this way. It is quite unprecedented.
“Last month we were seeing a drift upwards in the cost of buy-to-let fixed rate mortgages but it may be that the market is now expecting rates generally to fall rather than rise.
“It is likely that lower rates are also being fuelled by the continuing increase in the number of buy-to-let mortgage products. Whilst it is true some lenders have exited the market others are boosting their range and competing hard for new business.
“As landlords continue to be pressed on all sides by rising regulatory cost such as the new Tenant Fees Act and falling tax reliefs today’s news of a lowering of mortgage costs will be very much welcomed.”
