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TODAY'S OTHER NEWS

Reduced cost of BTL mortgages ‘is very good news for landlords’

The cost of buy-to-let mortgages has dropped further, the latest research from Property Master shows. 

The biggest month-on-month fall in cost was for the five-year fixed rate buy-to-let mortgage at 65% loan-to-value (LTV), dropping by £48 per month between February 2019 and February 2020 for a £150,000 mortgage. 

This represents a saving of almost £3,000 over the course of a five-year fixed rate deal.

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Meanwhile, the cost of a typical two-year fixed rate mortgage for a £150,000 loan at 75% LTV fell by £25 per month year-on-year, and for 65% LTV by £19 per month.

Angus Stewart, chief executive of Property Master, said: “Another fall in the cost of borrowing is very good news for landlords.

“We know that there are landlords languishing on expensive SVR [standard variable rate] mortgages as the uncertainty around Brexit and political instability has put them off moving on to a more competitive fixed rate.

“With the current record low rates on offer these landlords should act quickly because if the “Boris bounce” becomes a reality it may allow interest rates to begin to rise back to more normal levels.”

 

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