Buy to let boosted by “unprecedented” fall in some mortgage costs
There’s been an “unprecedented” across-the-board fall in fixed rate buy to let mortgage rates according to an online investment platform.
Property Master has been tracking buy to let mortgage interest rates in this way for 18 months and says it has never seen such a widespread fall.
The biggest fall recorded in recent weeks was for five-year fixed rate buy to let mortgage offers for 75 per cent of the value of a property. The monthly cost of this type of mortgage fell by £36 per month June to July.
Five-year fixed rates for 65 per cent of the value of a property fell month on month by £6.
Two-year fixed rate buy-to-let mortgages for 50 and 65 per cent of the value of a property fell by £5 each. Two-year fixed rate buy to let mortgages for 75 per cent of the value of a property fell by £8 per month.
The platform follows a range of buy to let mortgages and measures them on a hypothetical interest-only loan of £150,000. Deals from 18 of some of the biggest lenders in the buy-to-let market including Barclays, BM Solutions, RBS, The Mortgage Works, Godiva and Precise were tracked and calculated on the basis of deals available on July 1.
Angus Stewart, Property Master’s chief executive, says: “It’s likely that lower rates are also being fuelled by the continuing increase in the number of buy to let mortgage products. Whilst it’s true some lenders have exited the market others are boosting their range and competing hard for new business.
“As landlords continue to be pressed on all sides by rising regulatory cost such as the new Tenant Fees Act and falling tax reliefs today’s news of a lowering of mortgage costs will be very much welcomed.”