Fixed rate buy-to-let mortgage rates continue to fall
The biggest fall in monthly costs was for five year fixed rate buy-to-let mortgage offers for 50 per cent of the value of a property, the data from Property Master’s August report shows.
The report, which tracks the cost of mortgages from 18 of the largest buy to let lenders, found that the monthly cost of this type of mortgage fell by £13 per month July to August and five year fixed rates for 65 per cent of the value of a property fell month on month by £5.
However, five year fixed rates buy-to-let mortgage at 75 per cent of the value of a property was one of only two types tracked to show an increase, up £29 per month.
The report says that this may reflect the attractiveness of five year fixed rate products to landlords struggling to meet new affordability regulations.
The cost of two year fixed rate buy-to-let mortgages for 65 per cent of the value of a property fell by £2 per month and for 75 per cent of the value of a property by just £1.
Two year fixed rate buy-to-let mortgages for 50 per cent of the value of a property increased by £4 per month.
Angus Stewart, Property Master’s chief executive, said: “There have been a slew of rate cuts amongst lenders along with new offers being launched that are looking very attractive to landlords wanting to expand their portfolios or needing to remortgage.
“Good news on rates may well entice some landlords back into the market by helping them offset the many recent regulatory and tax costs they have been struggling to absorb.”