Buy-to-let investors are opting for cheaper properties in 2015, according to a new study from broker Mortgage Advice Bureau.

It said that almost three-quarters of landlords search for a mortgage on properties valued at less than £250,000, and more than a third are planning to pay less than £150,000 for an investment property.

A year ago, almost half (44%) of landlords were searching for mortgages on properties priced between £250,000 and £499,999. This proportion has fallen sharply over the past 12 months, down to just a quarter (24%).

Buy-to-let investors are also borrowing more to pay for these properties, as they take advantage of super low interest rates and borrow higher loan-to-value (LTV) mortgages.

Brian Murphy, head of lending at Mortgage Advice Bureau, said: “In recent months we have seen a surge of buy-to-let landlords looking for mortgages on lower priced properties. As rental demand remains strong nationwide, opting for a cheaper property can result in more attractive yields. It appears many landlords are looking to invest in areas outside the South of England, where property prices won’t hold them back from making a profit.”

“Mortgage rates have plummeted throughout 2015, with buy-to-let investors benefiting from competitive pricing as well as residential buyers. Although higher LTVs generally mean more costly monthly repayments, falling rates mean landlords may find they can now afford higher LTV products.”