BTL mortgage costs still being driven downMake Text Bigger
New December figures released from Mortgage Brain’s quarterly product data analysis reveal that mortgage costs in the Buy to Let market have continued to fall over the last three months.
This reflects the 2019 trend of a continued decrease in costs for the majority of BTL mortgages. The cost of a 60% LTV two year Fixed BTL mortgage, for example, is now 1.7% lower than it was 12 months ago. The reduction in costs represents an annual saving of £126on a £150k mortgage.
Rates also remain low on a 70% LTV two year Tracker BTL mortgage, with no appreciable change over the last three months. However costs are 4% lower than 12 months ago, equivalent to an annual saving of £324 on a £150k mortgage. The Mortgage Brain data shows that the greatest reductions in savings rates are on longer term fixed mortgages, meaning borrowers can benefit from better annualised savings.
For example,a 70% LTV five year Fixed BTL mortgage is now 1.8% lower compared to three months ago and 4.4% lower than 12 months ago. This equates to a yearly saving of £144 and £360 respectively, on a £150k mortgage. BTL v Residential Mortgage Brain’s latest analysis also reveals the differences between BTL mortgages when compared to mainstream residential products, with the cost of BTL mortgages higher.
The latest set of data shows that the cost of a 80% LTV two-year Fixed BTL product is almost 30% higher than the same product for a residential mortgage and for a five-year Fixed it is 18% higher.
Mark Lofthouse, CEO of Mortgage Brain, said: “Our latest BTL quarterly analysis shows some cost reductions over the last three months.When viewed over the course of 2019,they show that there has been a continuous reduction in rates resulting in substantial price reductions particularly for five-year fixed rate products.
“With specialist advice and support from brokers, landlords can continue to make the most of the low rates and be confident they are getting the best mortgage to suit their needs.”
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