Buy-to-let mortgage costs have fallen in recent months, with lenders across the country competing to attract customers.
Data from intermediary software supplier Mortgage Brain shows that in the last three months, interest rates and costs associated with buy-to-let mortgages have decreased.
For those with a 60% or 70% LTV, the cost of a two-year fixed buy-to-let product is 4% lower than it was in May this year.
This reduction equates to an average annual saving of £342 for a 60% LTV and £306 for a 70% LTV.
Property investors willing to lock into a longer fixed term deal can also benefit from this era of low rates. There has been a 3% reduction for 60% LTV three and five year fixed products, a 3% fall for 80% LTV five year fixed products, and a 2% drop for five year fixed deals with a 70% LTV.
Figures from UK Finance show that buy-to-let lending has fallen between this quarter and the one before it. It’s thought that tax changes such as higher stamp duty on second homes and the gradual removal of tax relief on mortgage interest could partly be responsible.
Mark Lofthouse, chief executive of Mortgage Brain, said: “Despite the forthcoming changes to buy-to-let lending, the outlook for investors at the moment is extremely favourable with BTL mortgage costs coming down yet again.
“With changes afoot, however, this could soon change and it will be interesting to see how the BTL story unfolds over the next three months.”
