An analysis of the buy-to-let market by Mortgage Brain has shown that mortgage costs have remained stable over the past three months.
Landlords seeking a new mortgage deal will be reassured to learn that despite the changing market place, the actual cost of buy to let (BTL) mortgages has remained fairly steady since December last year.
While the cost of a three year fixed mortgage is 2% higher than it was in December, the cost of a number of two and five year fixed rate BTL mortgages have remained static when compared to other costs at the same time.
Since December 2018, the cost of a 70% loan to value (LTV) tracker has fallen by 2% and a five-year fixed rate by 1%. These savings might seem small, but they offer investors potential annual savings of £126 and £72 respectively on a £150,000 mortgage.
The longer-term analysis shows that the market is in a healthy position when compared to 2016, and the introduction of the 3% stamp duty increase. A 60% LTV five-year fixed BTL mortgage is now 11% lower, a two-year fixed is 7% less, and a three-year fixed is 10% cheaper than three years ago.
Mark Lofthouse, CEO of Mortgage Brain, said: “Although our latest BTL product analysis shows little movement over the past three months, potential landlords and BTL investors can continue to make the most of the record lows in terms of rates and costs in the BTL market”.
