There has been a fall in the cost of buy to let mortgages in the last quarter, with the cost of a three year fixed rate buy to let mortgage with a 60 per cent LTV down 3 per cent on its figure just three months ago in February 2017.
The current rate is 2.44 per cent, with the reduction in cost for this product equivalent to a potential annual saving of £468 on a £150,000 mortgage
There was also a 2 per cent reduction in cost over the past quarter on two and three year fixed buy to let products. The offerings, at 2.50 per cent and 2.74 per cent respectively, each with a 70 per cent LTV now save landlords £648 and £324 annually.
However, the two-year fixed rate at 60 per cent, the 60 and 70 per cent LTV two-year tracker mortgages and the five year fixed rate at 70 per cent LTV have all remained stable, with mortgage costs currently consistent with those which were offered in February.
The cost of a two and three year fixed buy-to-let mortgage with an 80 per cent LTV is now down 8 per cent on this time last year, providing landlords with an annual saving of £774 on a £150k mortgage.
In the past six months, five-year fixed-rate buy to let mortgages with a 60 per cent LTV are down 3 per cent, and 7 per cent over the past year. This equates to an annual saving of £648.
CEO of Mortgage Brain, Mark Lofthouse, said: ‘It’s really been a period of little activity across the market in the movement of rates and costs over recent weeks and months. The residential market, in particular, has seen very little change since the start of the year. Our latest analysis, however, shows that buy-to-let investors are still in a good position to take advantage of the low rates and cost reductions that we’ve seen over the past three months.’