The costs of buy To let mortgages have fallen by as much as eight per cent over the past six months.
Software firm Mortgage Brain says the cost of a five year fixed buy to let mortgage with a 70 per cent Loan-To-Value is now eight per cent lower than it was in March 2016. It claims that with a current rate of 2.8 per cent, the reduction in cost for this product equates to a potential annualised saving of £738 on a £150,000 mortgage.
The cost of the lowest rate three year fixed BTL mortgage at 2.64 per cent and a two year fixed at 2.89 per cent – both with a 70 per cent LTV – have seen a six per cent reduction in cost since March and offer landlords an annualised saving of £504 and £540 respectively.
Buy to let mortgages with a 60 per cent LTV have also come down in cost over the past six months with a five year fixed down five per cent, a three year fixed down four per cent, and a two year fixed down two per cent since March.
However, the firm says some two year tracker BTL mortgages have increased in cost.
The cost of the lowest rate 80 per cent LTV product at 2.97 per cent, for example, is now 14 per cent higher than it was in March 2016. At 1.8 per cent over two years the cost of a two year tracker with a 60 per cent LTV is now three per cent higher, while the same product with a 70 per cent LTV is now one per cent higher.