One factor driving down costs is reportedly the number of products now available on the market.
Mortgage costs in the buy-to-let (BTL) market continued to fall since Q2, Mortgage Brain’s quarterly product data analysis has revealed.
The cost of a 60% LTV 2-year fixed BTL mortgage is now 1.9% lower than it was in June, representing an annual saving of £144 on an £150,000 mortgage.
Mark Lofthouse (pictured), chief executive of Mortgage Brain, said: “Overall the message for the BTL market is positive; especially for investors looking to fix for a longer term.
“The cost of BTL mortgages continue to reach historic lows, with the market remaining competitive given the number of BTL mortgages currently on the market.
“Nevertheless, the market remains clouded by the ongoing political uncertainty, the looming Brexit deadline as well as the weakening economic forecast.
“The need therefore for specialist advice from a broker is more important than ever, so landlords are confident they are getting a mortgage that best suits their needs.”
The cost of a 70% LTV 3-year fixed BTL mortgage has fallen by 1.1% in the past three months, equating to an annual saving of £90 on a £150,000 mortgage.
In addition, an 80% LTV 5-year fixed BTL mortgage has seen a year-on-year decrease of 3.5% representing an annual saving of £324.
One factor driving down the costs of BTL mortgages is reportedly the number of products now available on the market.
There are now 3,859 BTL products on the market from mainstream lenders, which is a year-on-year increase of 11%.
The cost of BTL mortgages remain higher than that of residential mortgages with the cost of a 80% LTV 5-year fixed product over 16% higher than the same product for a residential mortgage.
The cost of tracker mortgages see a smaller increase margin, with the cost of a 2-year 70% LTV tracker BTL mortgage being 4.75% higher than the residential equivalent.
