Interesting new data from Mortgage Brain has revealed that many mainstream buy-to-let mortgage products saw more rate and cost reductions during the last three months.
The findings reveal that the cost of a two-year fixed rate buy-to-let purchase product between 60% and 70% is now 4% lower than it was in May 2017.
A 70% LTV two-year tracker, with a current rate of 2.69%, is now 2% less than it was just three months ago. A 60% LTV tracker has fallen by 1% during the same period.
Financially, the 4% cost reduction for 60% and 70% two-year fixed products amounts to an annualised saving of £342 and £306 respectively during the last quarter.
The 2% fall in the cost of a 70% LTV two-year tracker gives borrowers a potential saving of £126 in the last three months.
In addition, Mortgage Brain’s findings show a 3% reduction in cost for a 60% LTV three and five-year fixed product, 3% drop in price for a 80% LTV five-year fix and 2% fall for a five-year fix with 70% LTV.
Mark Lofthouse, CEO of Mortgage Brain, observed: ‘Despite the forthcoming changes to buy-to-let lending, the outlook for investors at the moment is extremely favourable with buy-to-let mortgage costs coming down yet again. 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.’