On average, fees and charges on buy-to-let mortgages raised the overall cost for comparison by just 0.54% per annum in Q3. This is lower than the average of 0.67% extra in fees and charges seen at the start of 2013, and down from 0.58% in the second quarter of 2014.

However, beneath this overall trend there is also a growing divide between fees for borrowers at different loan-to-value (LTV) ratios.

Charges for low LTV deals up to 65%, and medium LTV (65% to 75%) buy to let mortgages have fallen dramatically.

By contrast, charges for 80% LTV loans have increased.

David Whittaker, managing director of Mortgages for Business, said: “This is a vote of confidence in landlords, at a time when lenders remain under serious pressure to maintain the safest possible loan books.

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“Yet the details are even more encouraging. Prioritising middle and lower LTVs is prudent – but the most encouraging signs are lenders offering landlords what they need.”

Five-year deals now make up almost one in five fixed rate mortgages on the market, at 19%, up from 15% in the second quarter of this year.

Three-year fixed rate deals have dropped from 19% to 17% of all products in Q3, while two-year fixes, standing at 54%, still dominate in absolute terms but have also dropped from 57% of products in Q2.

Whittaker said: “As the industry starts to look ahead to 2015, the most positive signs aren’t from the headline figures – but in the detail of how lenders are responding to demand for longer-term deals.

“Intrinsically, all landlords tend to have a long view…So looking ahead, we may see a further increase in longer term fixed rate mortgage products as lenders respond to an increased demand for products that provide more stability.”