Latest figures from Mortgage Brain’s quarterly product data analysis reveal that mortgage costs in the buy-to-let market continue to fall since the second quarter of 2019.
The cost of a 60% LTV two year fixed buy-to-let mortgage, for example, is now 1.9% lower than it was three months ago, which represents an annual saving of £144 on a £150k mortgage.
While the cost of a 70% LTV three year fixed buy-to-let mortgage has fallen by 1.1%, equating to an annual saving of £90 on a £150k mortgage compared to three months ago.
The Mortgage Brain data also shows that borrowers looking to fix for longer can benefit from better annualised savings. For example a 80% LTV five year fixed buy-to-let mortgage is now 3.5% lower compared to 12 months ago, representing an annual saving of £324.
One factor driving down the costs of buy-to-let mortgages is the number of products now available on the market. The analysis revealed that there are now 3,859 buy-to-let products on the market from mainstream lenders, which represents an increase of 11% compared to a year ago.
The analysis also reveals that the cost of buy-to-let mortgages remains higher when compared to mainstream residential mortgage products. The latest set of data (1 September 2019) shows that the cost of a 80% LTV five-year fixed product is over 16% higher than the same product for a residential mortgage.
However when it comes to the cost of tracker mortgages, the differences are less, with the cost of a two year 70% LTV tracker buy-to-let mortgages being just 4.75% higher than the residential equivalent.
Mark Lofthouse, CEO of Mortgage Brain, said: “Overall the message for the buy-to-let market is positive; especially for investors looking to fix for a longer term. The cost of buy-to-let mortgages continue to reach historic lows, with the market remaining competitive given the number of buy-to-let 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.”