Good news for landlords has arrived with the news that buy-to-let mortgage rates are falling, with lenders competing with each other in order to provide the cheapest rates.
Recent figures from Mortgage Brain suggest that there have been further rate and cost reductions on many mainstream products during the last three months.
Data released by the firm shows that the cost of a two-year fixed buy-to-let purchase for both 60% and 70% LTV products is now 4% than it was in May. This amounts to a saving of £342 for a 60% LTV mortgage and £306 for a 70% LTV mortgage.
In addition, 60% and 70% two-year trackers are down by 1% and 2% respectively during the last three months.
A number of longer-term deals are now cheaper, with three and five year fixes at 60% and five-year fixes at 80% LTV, having reduced by 3%.
Buy-to-let mortgage rates of falling
Mark Lofthouse, Chief Executive of Mortgage Brain, noted: ‘Despite the forthcoming changes to buy-to-let lending, the outlook for investors at the moment is extremely favourable with buy-to-let mortgage costs coming down yet again.’
‘With changes afoot, however, this could soon change and it will be interesting to see how the buy-to-let story unfolds over the next three months,’ he added.