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TODAY'S OTHER NEWS

Buy-to-let mortgage costs remain at record lows

Buy-to-let mortgage costs have stabilised at record lows, according to analysis by Mortgage Brain.

Costs have continued to fall on an annual basis, according to the report. For example, the cost of an 80% LTV two-year fixed rate mortgage is now 11% lower than it was a year ago, and 18% lower than it was at the start of 2014.

Mortgage Brain calculates that the lowest rate three-year fixed BTL product with an 80% LTV (at 3.39%) is now 16% lower than it was three years ago, and 10% lower than in 2016.

The analysis shows that landlords looking for long-term deal are also benefitting from reductions. The cost of a 60% LTV five-year fixed mortgage is now 15% lower than in 2014. On top of this, 70% and 80% five-year fixed BTL products are 14% and 11% respectively.

The mortgage sourcing system says that its short-term analysis shows signs of stabilisation after a long period of reductions. It has recorded mixed movement over the past three months, with many rates remaining static.

"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," comments Mark Lofthouse, Mortgage Brain chief executive.   

"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,” he says.

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