A number of buy-to-let landlords are continuing to benefit from the ongoing reductions of mortgage costs.
Lenders across the industry are still cutting percentage points off their most generous deals in an attempt to attract more business from buy-to-let landlords looking to remortgage property.
New market analysis from Mortgage Brain shows that the costs of buy-to-let mortgages have fallen by up to 8% in the last six months.
Data from the report shows that the cost of a typical five-year fixed buy-to-let loan with a LTV of 70% is 8% less than in March 2016.
The current average rate of 2.8% indicates that there is a potential for yearly savings of £738 on a mortgage worth £150,000.
Economists have predicted that the Bank of England is likely to announce a further cut to the base rate in November. Some have forecasted that the rate could be cut to as little as 0.1%, meaning that mortgage costs could fall even further at the end of 2016.
Buy-to-let mortgage costs fall by 8%
Mark Lofthouse, CEO of Mortgage Brain, noted, ‘with further interest rate cuts predicted by the Bank of England it will be interesting to see what happens to mortgage rates and costs over the next few months.’
‘There’s no doubt though that on the whole borrowers and potential buy-to-let investors are in a great position to take advantage of the low rates and cost reductions that we’re seeing,’ he added.