Buy-to-let mortgage rates fall
The cost of buy-to-let mortgages has dropped by up to 8% in the last six months, according to technology firm, Mortgage Brain.
It said that the average five-year fixed buy-to-let rate for landlords with at least a 30% deposit is now 8% lower than it was in March at 2.80%, saving them £738 a year on a £150,000 mortgage.
The cost of the lowest three-year fixed buy-to-let mortgage on the market at 2.64%, and two-year fix at 2.89%, both at 70% LTV, have fallen by 6% since March, equivalent to an annual saving of £504 and £540, respectively.
Buy-to-let mortgages with a 60% LTV have also lowered in cost over the past six months, with a five-year fix down 5%, a three-year fix 4% cheaper, and a two-year fix 2% lower.
But it’s not all good news for buy-to-let borrowers, as some two-year tracker mortgages for landlords have increased in cost, said Mortgage Brain.
The cost of the lowest rate 80% LTV product at 2.97%, for example, is now 14% higher than it was in March.
Mark Lofthouse, CEO of Mortgage Brain, said: “With further interest rate cuts predicted by the Bank of England it will be interesting to see what happens to mortgage rates and costs over the next few months.
“There’s no doubt though that on the whole borrowers and potential buy-to-let investors are in a great position to take advantage of the low rates and cost reductions that we’re seeing.”