Mortgage lenders have reduced the cost of most of their fixed rate buy-to-let deals for landlords over the past 12 months, according to Property Master.
The firm’s mortgage tracker, which follows a range of buy-to-let mortgages for an interest-only loan of £150,000, shows that average rates across a range of classes of two-, three- and five-year fixed rate mortgages for landlords have dropped over the past year.
By using algorithms to match the requirements of individual private landlords against the entire buy-to-let mortgage market, the online mortgage broker reports that the cost of most fixed rate buy-to-let mortgages have fallen year-on-year - some by as much as £348 on an annual basis for a typical mortgage of £150,000.
Five-year fixed rate mortgages, particularly popular with landlords at the moment, have seen the most consistent falls.
Property Master’s January 2019 Mortgage Tracker shows five-year fixed rate offers for 50%, 65% and 75% of the value of a property are all down since the start of the year. Savings for each of these mortgages respectively were £8, £29 and £21 per month.
Angus Stewart, Property Master’s chief executive, commented: “Whilst interest rate prediction given the uncertainty around Brexit is very difficult indeed, the Bank of England has given a clear signal that rates must rise at some point and most commentators are expecting this to happen in the coming year.
“The current low rates, particularly for five-year fixed mortgage products, suggest that landlords should give serious consideration to remortgaging now to minimise the rate uncertainty that Brexit might bring.”