Despite a raft of regulation changes, there is some good news at least for potential landlords with new data showing further reductions in the cost of buy-to-let mortgages.
According to Mortgage Brain, the cost of a two-year fixed buy-to-let mortgage with a 20% deposit is now 4% lower than it was in August 2016.
With a current rate of 3.34% the reduction in cost equates to a potential annual saving of £324 on a £150,000 mortgage.
On an annual basis it is even better news with costs falling 11% in the past year – a potential annual saving of £1,098.
While seeing very little movement over the past three months the lowest rate five-year fixed buy-to-let product with a 70% LTV now costs 6% less than May 2016 and 9% down in cost compared to 12 months ago. With a rate of 2.56%, the 9% cost reduction equates to an annual saving of £846 on a £150,000 mortgage.
It’s not all good news, however, with Mortgage Brain’s data showing cost increases for some buy-to-let mortgages. A three-year fixed buy-to-let product with 70% LTV now costs 3% more than it did in April and an 80% LTV two-year tracker now costs 4% more than it did in August.
Mark Lofthouse, CEO of Mortgage Brain, said: “The rise in costs for the three year Fixed and two-year tracker mortgages could be a sign that buy-to-let lenders are starting to look at minimising risk amidst further Brexit uncertainty.
“There’s no doubt though that on the whole potential buy-to-let investors remain in a great position to take advantage of the low rates and cost reductions that we’re continuing to see.”
