Landlords will welcome the news that buy-to-let mortgage costs are falling as lenders compete against each other to offer the cheapest deals.
According to fresh figures from Mortgage Brain, there have been further rate and cost reductions on most mainstream buy-to-let products since the second quarter of 2019.
For example, the mortgage technology provider’s data shows that the cost of a two-year fixed buy-to-let purchase product at 60% loan-to-value (LTV) is now 1.9% lower than it was three months ago, which represents an annual saving of £144 on a £150,000 mortgage.
Meanwhile, the cost of a 70% LTV three year fixed BTL mortgage has dropped by 1.1%, equating to an annual saving of £90 on a £150,000 mortgage compared to three months ago.
Many longer-term deals are also now cheaper, with five-year fixes at 80% LTV now 3.5% lower compared to 12 months ago, representing an annual saving of £324.
One factor driving down the costs of buy-to-let mortgages is the number of products now available on the market.
The Mortgage Brain analysis revealed that there are now 3,859 buy-to-let products on the market from mainstream lenders, which represents an increase of 11% compared to a year ago.
Mark Lofthouse, chief executive of Mortgage Brain, said: “Overall the message for the buy-to-let market is positive; especially for investors looking to fix for a longer term.
“The cost of buy-to-let mortgages continue to reach historic lows, with the market remaining competitive given the number of BTL mortgages currently on the market.
“Nevertheless, the market remains clouded by the ongoing political uncertainty, the looming Brexit deadline as well as the weakening economic forecast. The need therefore for specialist advice from a broker is more important than ever, so landlords are confident they are getting a mortgage that best suits their needs.”