Mortgage lenders have cut their rates for buy-to-let investors looking for deals in a bid to attract landlords.
The cost of a typical five-year fixed rate buy-to-let mortgage has fallen since the start of the year, according to a new mortgage tracker launched by Property Master.
According to the digital start up, which uses algorithms to match requirements of individual private landlords against products available in the buy-to-let mortgage market, two-year fixed rates based on 65% of the value of the property and 75% of the value of the property have also declined since the start of 2018.
Only two-year fixed rate mortgages for 50% of the value of a buy-to-let property increased over the five-month period and then by 0.42%.
Angus Stewart, chief executive of Property Master, commented: “This is quite a significant increase and perhaps reflects that there are fewer lenders discriminating at the 50% LTV level. Lenders are clearly taking margin here and giving back on other LTV levels.”
“Our findings show that there are some very good deals out there for landlords despite worries over any future increase in base rates.”
Property Master’s findings come on the back of recent research revealing that the number of buy-to-let products currently on the market has reached a record high, and Stewart believes that landlords could be benefiting from “unprecedented competition amongst lenders for their business”.