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Buy-to-let mortgage costs continue to fall

Mortgage costs in the buy-to-let market have been falling since the second quarter of 2019 as lenders continue to make reductions. 

According to Mortgage Brain’s latest quarterly product data analysis, released yesterday, the cost of a 60% loan-to-value (LTV) two-year fixed buy-to-let mortgage is now 1.7% lower than it was 12 months ago, which represents an annual saving of £126 on a £150,000 mortgage.

The cost of a 70% LTV three-year tracker buy-to-let mortgage has fallen by 4% year-on-year - an annual saving of £324 on a £150,000 mortgage compared to 12 months ago.


The data from Mortgage Brain also shows that borrowers looking to fix for longer can benefit from better annualised savings. 

For example, a 70% LTV five-year fixed buy-to-let mortgage is now 1.8% lower compared to three months ago and 4.4% lower than 12 months ago. This equates to an annual saving of £144 and £360 respectively, on a £150,000 mortgage.


The analysis also reveals that the cost of buy-to-let mortgages remains higher when compared to mainstream residential mortgage products. 

The latest set of data (as at 1st December  2019) shows that the cost of a 80% LTV two-year Fixed BTL product is almost 30% higher than the same product for a residential mortgage and for a five-year fixed it is 18% higher.

Mark Lofthouse, CEO of Mortgage Brain, comments: “Our latest BTL quarterly analysis shows some cost reductions over the last three months. When viewed over the course of 2019, they show that there has been a continuous reduction in rates resulting in substantial price reductions particularly for five-year fixed rate products. 

“With specialist advice and support from brokers, landlords can continue to make the most of the low rates and be confident they are getting the best mortgage to suit their needs.”

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