There has been a sharp decline in the cost of most mainstream buy-to-let mortgages over the past three months, new figures show.
Fresh data from Mortgage Brain reveals that the cost of an 80% loan-to-value (LTV) two-year fixed rate buy-to-let mortgage has dropped by 4% to just 3.34%, with the reduction in cost equating to a potential annualised saving of £324 on a £150,000 mortgage.
Meanwhile, 60% LTV five-year fixes are 2% cheaper and a typical 70% LTV two-year tracker is on average 3% cheaper; offering buy-to-let landlords an annualised saving of £234.
Not everything cheapened up however, as 80% LTV two-year trackers now cost 4% more than three months ago.
Mark Lofthouse, chief executive of Mortgage Brain, said: “The rise in costs for the three-year fixed and two-year tracker mortgages could be a sign that BTL 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.”