An average five-year fixed buy-to-let rate with a 70% loan-to-value (LTV) is now 8% lower than it was in March at 2.80%, saving potential landlords £738 on a £150,000 mortgage, the findings showed.
The cost of the lowest three-year fixed buy-to-let mortgage on the market at 2.64%, and two-year fix at 2.89%, both at 70% LTV, have fallen by 6% since March, equivalent to an annualised saving of £504 and £540, respectively.
Buy-to-let mortgages with a 60% LTV have also lowered in cost over the past six months, with a five-year fix down 5%, a three-year fix 4% cheaper, and a two-year fix 2% lower.
Despite these falling rates, some two-year tracker mortgages for landlords have increased in cost. The cost of the lowest rate 80% LTV product at 2.97%, for example, is now 14% higher than it was in March. This is likely a reflection of lenders moving to protect margins, after the Bank of England lowered the base rate to 0.25% last month.
At 1.80% the cost of a two-year tracker with a 60% LTV is now 3% higher, while the same product with a 70% LTV is now 1% higher.
Mark Lofthouse, CEO of Mortgage Brain, said: “With further interest rate cuts predicted by the Bank of England it will be interesting to see what happens to mortgage rates and costs over the next few months.
“There’s no doubt though that on the whole borrowers and potential buy-to-let investors are in a great position to take advantage of the low rates and cost reductions that we’re seeing.”
