The cost of most fixed buy-to-let mortgage rates was down
annually at the beginning of this year, according to the latest Mortgage
Tracker from Property Master.
The digital start-up found that most buy-to-let fixed rate
mortgages were down year-on-year in January, some by as much as £29 per month
for a typical loan of £150,000.
This comes as landlords are being advised to brace
themselves for a possible two Bank of England base rate rises this year.
Five-year fixed rate mortgages, which have been steadily
gaining popularity amongst buy-to-let landlords, have seen the most consistent
falls. Property Master found that five-year offers for 50%, 65% and 75%
loan-to-value (LTV) were all down at the start of the year. Savings for each of
these mortgages on an average loan of £150,000 were £8, £29 and £21 per month
The cost of many two-year fixed rate deals were up annually,
although there was a saving of £11 per month for landlords borrowing 65% of the
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 market are tracked.
Figures for the latest report were calculated based on deals
available on 1st January 2019.
Angus Stewart, the Chief Executive of Property Master,
says: “Whilst interest rate prediction, given the
uncertainty around Brexit, is very difficult indeed, the Bank of England has
given a clear signal that rates must rise at some point, and most commentators
are expecting this to happen in the coming year.
“The current low rates,
particularly for five-year fixed mortgage products, suggest that landlords
should give serious consideration to remortgaging now, to minimise the rate
uncertainty that Brexit might bring.”
Are you considering
remortgaging ahead of potential rate rises this year?