Landlords will welcome the news that buy-to-let mortgage rates are falling as lenders compete against each other to have the cheapest rates.
According to fresh figures from Mortgage Brain, there have been further rate and cost reductions on most mainstream buy-to-let products over the past three months.
From example, the mortgage technology provider’s data reveals that the cost of a two-year fixed buy-to-let purchase product for both 60% and 70% loan to value (LTV) is now 4% less than it was in May 2017, which equates to a saving of £342 for a 60% LTV mortgage and £306 for a 70% LTV mortgage, while 60% and 70% two-year trackers are down 1% and 2% respectively over the past three months.
Many longer-term deals are also now cheaper, with three- and five-year fixes at 60% and five-year fixes at 80% LTV having fallen by 3%.
Mark Lofthouse, chief executive of Mortgage Brain, said: “Despite the forthcoming changes to buy-to-let lending, the outlook for investors at the moment is extremely favourable with buy-to-let mortgage costs coming down yet again.
“With changes afoot, however, this could soon change and it will be interesting to see how the buy-to-let story unfolds over the next three months.”