It came as part of a wider warning that landlords will increasingly struggle to get mortgages as the impact of the coronavirus is increasingly felt across the lending industry.
The firm suggested lenders may not be confident the government’s mortgage payment holidays will provide a sufficient safety net as a reason for the increased rates and margins.
It highlighted this was despite the background of the Bank of England reducing its base rate all the way down to 0.1 per cent, which landlords might expect to mean lower mortgage rates.
“Lenders concerned about the increased risk of tenants defaulting on rents and falling property prices may well choose to widen their margins and increase the cost of borrowing,” it said.
“Some lenders have increased rates despite the 0.65 per cent fall in base rate where margins as a result have increased by about one per cent.”
The broker told Specialist Lending Solutions that it recognised lenders were struggling to price risk and understand landlords’ ability to make payments at the moment.
“It’s most surprising to see lenders widening their margins to price that risk in. It’s very early days and it’s very challenging,” a spokesperson added.
Property Master chief executive Angus Stewart concluded: “In recent years the buy-to-let market has been characterised by increased competition among lenders leading to lower pricing and new, innovative products.
“We are urging the banks now to continue in that vein and support landlord customers as they deal with this really difficult situation.”