Flat fees for buy-to-let mortgages have dropped to their lowest level for 12 months after falling by more than 5% in the second quarter of the year, according to the latest figures from Mortgages for Business.
The average flat fee for buy-to-let products has fallen from £1,446 in Q1 to its existing rate of £1,370, which means that private landlords opting for fixed fees will save an average of £76 in fees on every mortgage they take out, the independent broker said.
The fee reduction is welcome news for many buy-to-let landlords, especially those not interested in percentage based fees, which now apply to almost half - 48% - buy-to-let mortgage products, having overtaken flat fees earlier this year.
Steve Olejnik, chief operating officer of Mortgages for Business, said: “With interest rates still at exceptional lows, it’s all the more important to make sure you look at any additional charges when taking a buy-to-let mortgage. It is therefore promising to see a reduction in the average flat fee charged for mortgage products.”