x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

TODAY'S OTHER NEWS

Cost of five-year fixed rate buy-to-let mortgages fall

The cost of five-year fixed rate mortgages has continued to fall despite fears of an imminent interest rate rise, new figure show.

The Bank of England raised the chances of a rate rise next month after its chief economist recently joined two other members of its rate-setting monetary policy committee voting for an immediate hike in borrowing costs.

But new data from online mortgage broker, Property Master, shows that five-year fixed rate offers for 50%, 65% and 75% of the value of a property have continued to fall since the start of the year. 

Savings for each of these mortgages respectively were £11, £24 and £13 per month, according to the digital start up that uses algorithms to match the requirements of individual private landlords against the entire buy-to-let mortgage market.

Two-year fixed rates remained relatively stable although savings were available for landlords borrowing 65% of the value of a property.

Angus Stewart, Property Master’s chief executive, said: “Buy-to-let mortgage rates have remained competitive despite gathering fears of a rise in interest rates. 

“Any increases in cost that we have recorded in our research, mainly for two-year fixed rates, have been moderate whilst the cost of the increasingly popular five-year fixed rates has continued to fall. Much of this has been the result of increased competition in the marketplace, recent figures recorded a 13% increase in the number of buy-to-let mortgages on offer.

“Landlords are also benefiting from greater innovation as lenders respond to the changing complexity of regulation in this marketplace.”

Stewart continued: “Nevertheless, at some point the Bank of England will have to move rates.  There are only four more meetings this year of the Monetary Policy Committee at which a rate rise could be announced so landlords looking to refinance should not assume the deals they see currently on the market will continue to be available.”

Average rate and monthly cost for a loan amount of £150k.

Average rate

Monthly cost

Product

2 Year Fixed 50% BTL

2 Year Fixed 65% BTL

2 Year Fixed 75% BTL

5 Year Fixed 50% BTL

5 Year Fixed 65% BTL

5 Year Fixed 75% BTL

SVR 100% loan

2 Year Fixed 50% BTL

2 Year Fixed 65% BTL

2 Year Fixed 75% BTL

5 Year Fixed 50% BTL

5 Year Fixed 65% BTL

5 Year Fixed 75% BTL

SVR 100% loan

01/01/2018

1.62%

2.16%

2.65%

2.40%

2.86%

3.33%

4.82%

£272

£318

£370

£321

£375

£434

£602

01/02/2018

1.52%

2.15%

2.62%

2.28%

2.80%

3.26%

4.78%

£246

£314

£368

£305

£367

£424

£597

01/03/2018

1.99%

2.16%

2.65%

2.26%

2.81%

3.26%

4.78%

£270

£318

£376

£303

£369

£426

£597

01/04/2018

2.03%

2.13%

2.65%

2.32%

2.77%

3.27%

4.78%

£285

£312

£374

£310

£364

£426

£597

01/05/2018

2.05%

2.12%

2.64%

2.33%

2.78%

3.20%

4.78%

£287

£314

£373

£312

£365

£417

£597

01/06/2018

1.71%

2.14%

2.67%

2.33%

2.70%

3.20%

4.82%

£276

£311

£375

£311

£353

£418

£603

01/07/2018

1.71%

2.17%

2.74%

2.32%

2.68%

3.22%

4.82%

£277

£315

£387

£310

£351

£421

£603

icon

Please login to comment

valpal
submit
sign up