Landlords set to benefit from a drop in buy-to-let costs
Buy-to-let mortgage costs fell in the second quarter of 2019 according to new research from Moneyfacts.co.uk.
It found that the average cost of a two-year fixed rate buy-to-let mortgage dropped 0.1 per cent from 3.11 per cent at the start of the year to an existing rate of 3.01 per cent.
In terms of two-year deals, the data reveals that the average two-year fixed mortgage rate at 75 per cent loan-to-value (LTV), for example, stood at 3.16 per cent at the start of the year, whereas now it stands at 3.02 per cent.
Meanwhile, the 80 per cent LTV product has been reduced from 3.81 per cent to 3.75 per cent and 70 per cent from 3.49 per cent to 3.45 per cent.
There has also been a drop in the average rates for both three-year fixed and five-year fixed buy-to-let mortgage products.
The average three-year fixed rate buy-to-let mortgage product currently stands at 2.75 per cent, down from 3.02 per cent in January, while the five-year fixed is stood at 3.5 per cent, down from 3.56 per cent at the start of the year.
According to Moneyfacts.co.uk, the number of deals available to first-time landlords has increased to an all-time high.
The research shows that the number of deals available to first-time landlords has risen sharply over the past five years, up from 645 deals in 2014 to its existing rate of 1,405.
In the past year alone, product numbers have increased by 137.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Entering the buy-to-let market hasn’t been without its hurdles, and almost two years since the PRA introduced rules expected to tighten lending, the move doesn’t seem to have shaken up lenders attitudes to attract first-time landlords. In fact, the number of deals available to these individuals has now boomed to a record high.”