Online mortgage broker Property Master has revealed that the cost of many popular five-year fixed rate buy-to-let mortgages has fallen back again after a sharp month on month spike February to March.
Many of these mortgages are now cheaper than they were a year ago in April 2018.
However, product fees for five-year fixed rate mortgages have increased year-on-year – sometimes by as much as £335.
Property Master’s April 2019 Mortgage Tracker shows the cost of five-year fixed rate offers for 50% of the value of a property fell by £8 a month between March and April. Year on year this type of mortgage was down in cost by £28 a month. The cost of a five-year fixed rate for 65% of the value of a property fell by £4 a month but by £18 per month when compared to the cost a year ago in April 2018. Five-year fixed rates for 75% of the value of a property remained the same at £408 March to April but year on year fell by £18 a month.
Almost all the categories of fixed-rate buy-to-let mortgages being tracked showed a sharp year-on-year increase though in average product fees. Fees for a two-year fixed rate for 50% of the value of a property leapt from £714 in April 2018 to £1,599 today – an increase of £885. The other largest increase in average product fee was for five-year fixed rates for 50% of the value of a property which increased from £1,164 in April 2018 to £1,499 today – an increase of £335.
The Property Master Mortgage Tracker follows a range of buy-to-let mortgages for an interest only loan of £150,000. Deals from 18 of some of the biggest lenders in the buy-to-let market including Barclays, BM Solutions, RBS, The Mortgage Works, Godiva and Precise were tracked.
Angus Stewart, Property Master’s chief executive, said: “It is good news that the type of deals many landlords favour have fallen back a little in cost after last month’s increase. Better still the headline rate for many of these offers are actually less than they were a year ago. However, there is something of a catch in the increase in many product fees.
“Applying for a buy-to-let mortgage can be a complex process and it is important landlords compare the total cost of the mortgage they are offered.”