The mortgage technology provider’s data shows there have been further rate and cost reductions on most mainstream buy-to-let products over the past three months.
The cost of a two-year fixed BTL purchase product, for both 60 per cent and 70 per cent loan to value is now 4 per cent lower than it was in May 2017.
Mortgage Brain said this reduction equates to an annual saving of £342 for a 60 per cent loan to value mortgage and £306 for a 70 per cent loan to value mortgage.
Mark Lofthouse, chief executive of Mortgage Brain, said: “Despite the forthcoming changes to buy-to-let lending, the outlook for investors at the moment is extremely favourable with BTL mortgage costs coming down yet again.
“With changes afoot, however, this could soon change and it will be interesting to see how the BTL story unfolds over the next three months.”
Figures from UK Finance, also out today, showed a fall in buy-to-let lending between this quarter and the last, as tax changes including increased stamp duty on second home purchases and the gradual removal of tax relief on mortgage interest.
Mortgages for Business, a specialist in business mortgages, said its research showed a smaller fall in buy to let mortgage rates.
“Our records show that two-year fixed BTL rates have only reduced by 1.4 per cent since May but the difference could be in how Mortgage Brain captures the product information," David Whittaker, chief executive of Mortgages for Business said.
"Still, the reduction is good news for borrowers, although we have seen an increase in the use of percentage-based arrangement fees and a drop in the use of fee-free products which suggests that lenders could be attempting to regain some of their lost margins here.”
Alastair McKee, managing director of mortgage broker, One 77 Mortgages, said buy-to-let was still flourishing at the top end.
"While buy-to-let has dropped off in the mass market, at the higher end the new regulations have had less of an impact," he said.
"A lot of people, especially portfolio landlords, have done very well out of buy-to-let over the years and are in a strong position as a result.
"These more committed landlords are adapting to the new regime rather than running away from it.
"They still see buy-to-let as a viable investment, just one that needs a lot more attention and management in order to maintain a margin.”
rosie.murraywest@ft.com
