According to Mortgage Brain’s latest buy to let product data analysis the cost of a two-year fixed buy-to-let purchase product, at up to 70% Loan To Value (LTV) is now 4% lower overall, if not by rate than it was in May 2017.
The cost of a 70% LTV, two-year tracker, with a current rate of 2.69% (as of 1 August 2017), is now 2% lower than it was three months ago, while at 60% LTV the cost is down by 1% over the same period.
Mortgage Brain says the 4% cost reduction for the 60% and 70% two year fixed products means a saving of £342 and £306 respectively for landlords over the past three months.
Meanwhile five-year fixes at 60% and 80% LTV are down in cost by 3%.
With a current rate of 2.40%, the 3% cost reduction for the 60% LTV five year fixed equates to an annual saving of £630.
But Mark Lofthouse, chief executive office of Mortgage Brain, said the fall in costs might not last.
“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,” he said. “With changes afoot, however, this could soon change and it will be interesting to see how the buy-to-let story unfolds over the next three months.”
Next month, on 30 September, the second phase of Prudential Regulation Authority changes come into effect, largely affecting portfolio landlords.