Fresh research from Mortgage Brain has revealed that buy-to-let mortgage costs remained at record lows during the last three months.
Over the last three years, there have been strong year-on-year reductions in the cost of buy-to-let mortgages. For example, the cost of an 80% LTV two-year fixed rate is now 18% less than it was at the beginning of 2014 and 11% less than one year ago.
In addition, the lowest rate three-year fix at 80% LTV (3.39%) is 16% less than it was three years ago and 10% less than last year.
For a 60% LTV five-year fix, rates are 15% lower than in 2014. For 70% and 80% LTV, rates are 14% and 11% lower respectively.
Despite the long period of reducing mortgage rates, short term analysis reveals there are signs of potential stabilisation with mixed movement in costs of all major BTL products in the last three months.
A three-year fix at 80% LTV costs 4% less than it did three months ago. The costs of a two-year fix at 60% and 80% LTV, a three-year fix at 70% LTV and a five-year fix at 60% LTV are all down by just 1% in comparison to November 2016.
Buy-to-let costs showing signs of consistency
Mark Lofthouse, CEO of Mortgage Brain, observed: ‘Like our recent residential mortgage product analysis the buy-to-let sector looks like it could be levelling out and moving away from the long period of historic lows in terms of costs and rates.’
‘Buy-to-let investors can still take advantage of some good savings and low rates when compared to this time last year, however, the mixed and marginal movement in costs over the past three months could be seen as a further sign of stability, or even the start of a period of rises,’ Lofthouse added.