Landlords are benefiting from continuing reductions in buy-to-let mortgage rates as new data shows they have fallen by as much as 8 per cent over the past six months, according to Mortgage Brain’s latest data analysis.
The cost of a five-year fixed buy-to-let loan with a 70 per cent loan-to-value (LTV) is now 2.8 per cent, which means there is a potential annualised saving of £738 on a £150,000 mortgage.
Buy-to-let mortgages with a 60 per cent LTV have also come down in the past six months. A five-year fixed rate is down by 5 per cent, a three-year fixed rate is down 4 per cent, and a two-year fixed rate is down 2 per cent in cost since March 2016.
The cost of the lowest rate three-year fixed buy-to-let mortgage at 2.64 per cent, and a two-year fixed rate at 2.89 per cent – both with a 70 per cent LTV – has seen a 6 per cent reduction in cost since March and offer landlords an annualised saving of £504 and £540 respectively.
Mark Lofthouse, chief executive of Mortgage Brain, said: “With further interest rate cuts predicted by the Bank of England it will be interesting to see what happens to mortgage rates and costs over the next few months.”
Ryan Tuff, mortgage advisor at Tussle, said: “This is all good news for homeowners – especially those who have seen the value of their home increase since purchase – and presents a good time to take advantage of these loan-to-value driven rates.”