Buy-to-let mortgage rates continue to fall, albeit at a slower rate, the latest data provided by Property Master shows.
October’s report from the online mortgage broker reveals that costs have dropped in four out of the six categories tracked but interest rates remain unchanged in the other two categories.
The figures show that the greatest drop in monthly cost was for five-year fixed rate buy-to-let mortgage offers at 50% loan-to-value (LTV). The monthly cost of this type of mortgage fell by £25 per month, from September to October.
Five-year fixed rates at 65% LTV fell month-on-month by £10. Five-year fixed rates at 75% LTV dropped by just £1.
Two-year fixed rate buy-to-let mortgage offers at 75% LTV fell by £4 per month. But average interest rates stayed unchanged month-on-month for two-year fixed rate buy-to-let mortgages for 50% and 65% of the value of a property.
Angus Stewart, Property Master’s chief executive, commented: “The previous quarter saw our report record two across the board falls in the cost of all the fixed rate buy-to-let mortgage categories we track. But as we go into the last quarter of this year, we have seen this decline stall – at least in the cost of two-year fixed rates. The further reduction in some five year fixed rates provides some landlords with an incentive to fix their commitments at what may be the lowest rate we will see for some time.
“Lenders have been awash with funds recently which has been driving competition and lower mortgage costs. As ever the biggest influencer on interest rates going forward will be predicting the future strength of the UK economy which whilst Brexit remains unresolved is obviously very difficult indeed.
“It is unclear whether there will need to be a further fall in interests rates to stimulate the economy and this will be driven by whether or not we leave the EU at the end of this month and if we do whether or not it is with a deal. The MPC [Monetary Policy Committee] meeting on November 7th will be a critical review point.”