Cost of most fixed BTL rates down year-on-year, says online mortgage broker

Cost of most fixed BTL rates down year-on-year, says online mortgage broker


Todays other news
The current controls come to an end on March 31...
The agency is also seeking other partnerships in Portugal...
The investment was supposed to be for a city centre...
The first one is in Manchester - but will the...


The majority of buy-to-let fixed rate mortgages are currently down year-on-year – some by as much as £29 per month for a typical mortgage of £150,000, according to Property Master.

While buy-to-let landlords are being advised to prepare themselves for two potential bank base rate increases this year, the online mortgage broker’s January 2019 Mortgage Tracker showed five-year fixed rate offers for 50%, 65%, and 75% of the value of a property are all down since the start of the year.

In fact, five-year fixed rate mortgages, which have been steadily gaining in popularity amongst buy-to-let landlords, have seen the most consistent falls. Savings for the 50%, 65% and 75% mortgages were £8, £29 and £21 per month respectively.

Meanwhile, the cost of many two-year fixed rates were up year on year, although there was a saving of £11 per month for landlords borrowing 65% of the value of a property.

Property Master’s 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 buy-to-let market – including Barclays, BM Solutions, RBS, The Mortgage Works, Godiva and Precise – were tracked. Figures for this month’s Mortgage Tracker were calculated on deals available on January 1 2019.

Angus Stewart, chief executive of Property Master, commented: “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.”

He said that 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.

Launched almost two years ago, Property Master uses algorithms to match the requirements of individual private landlords against the entire buy-to-let mortgage market which is currently served by around 12,000 mortgage brokers.

The firm aims to offer landlords a free, easy-to-use mortgage search tool which provides a mortgage quote that is pre-screened against each lender’s specific and changing criteria.

It has already attracted financial backing from a wide range of private investors including a minority stake being taken by LSL Property Services, whose estate and letting agency brands include Your Move and Reeds Rains.

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Property Investor Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
Landlords are optimistic about their own properties, but not about...
What's the difference between sale prices for cash and mortgaged...
Investors need to plan for a market where rates are...
Rising mortgage rates are affecting residential property lending more than...
Spain’s draconian new tax is already spooking British investors...
The Budget has forced a revision of forecasts for the...
Prices and sales volumes will grow in 2025 despite the...
Recommended for you
Latest Features
The current controls come to an end on March 31...
The agency is also seeking other partnerships in Portugal...
Sponsored Content
As the property industry shifts towards sustainable practices, Inspired Property...
Are you concerned about rising interest rates and their potential...
In the ever-evolving landscape of property investment, staying ahead of...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here