Many buy-to-let landlords are benefitting from the continuing reductions of mortgage costs, with lenders across the board shaving percentage points off their best deals in an effort to attract greater business from those buying or remortgaging property, including buy-to-let landlords.
Fresh market analysis by Mortgage Brain reveals that that the costs of buy-to-let mortgages have actually fallen by as much as 8% over the past six months.
Mortgage Brain’s latest product data analysis shows the cost of a five-year fixed buy-to-let loan with a 70% loan-to-value (LTV) is now 8% less than it was in March 2016.
The current rate of 2.8% - as of 1 September 2016 - means there is a potential annualised saving of £738 on a £150,000 mortgage.
With economists predicting that the Bank of England is likely to announce a further cut to the base rate in November, bringing it down from 0.25% to just 0.1%, there is every chance that mortgage costs could yet fall further in the closing months of 2016, according to Mark Lofthouse, CEO of Mortgage Brain.
He said: “With further interest rate cuts predicted by the Bank of England it will be interesting to see what happens to mortgage rates and costs over the next few months.
“There’s no doubt though that on the whole borrowers and potential buy-to-let investors are in a great position to take advantage of the low rates and cost reductions that we’re seeing.”