Buy-to-let mortgage costs continue fall in value, suggesting the outlook for investors is “favourable” despite incoming regulation changes, according to Mortgage Brain.
The mortgage technology provider said that there had been further rate and cost reductions of most mainstream buy-to-let products over the past three months.
Its analysis shows that the cost of a two year fix at 60% and 70% loan-to-value is now 4% lower than it was in May 2017.
The cost of a 70% LTV two-year tracker, with a current rate of 2.69%, is now 2% lower than it was three months ago, while its 60% LTV counterpart is down in cost by 1%.
This equates to an annualised saving of £342 for borrowers with a 60% LTV mortgage and £306 for a 70% LTV.
The Prudential Regulation Authority is bringing in tougher rules for portfolio landlords – those with four or more rental properties – on 30 September.
It expects firms to adopt a more specialist underwriting process to reflect greater complexity of lending to portfolio landlords.
Mark Lofthouse, CEO of Mortgage Brain, said: “Despite the forthcoming changes to buy-to-let lending, the outlook for investors at the moment is extremely favourable with buy-to-let mortgage costs coming down yet again.
“With changes afoot, however, this could soon change and it will be interesting to see how the buy-to-let story unfolds over the next three months.”
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