New data from Mortgage Brain has revealed that over the past three months, most mainstream buy-to-let mortgage products saw further rate and cost reductions.
According to the findings, the cost of a two-year fixed rate buy-to-let purchase product between 60% and 70% LTV is now 4% lower than it was in May 2017.
The cost of a 70% LTV two-year tracker, with a current rate of 2.69% (as of 1st August 2017), is now 2% lower than it was three months ago, while its 60% LTV counterpart is down in cost by 1% over the same period.
In financial terms, the 4% cost reduction for the 60% and 70% two-year fixed products equate to an annualised saving of £342 and £306 respectively over the past three months. The 2% drop in the cost of the 70% LTV two-year tracker offers borrowers a potential £126 saving over the past quarter, or £252pa when compared to this time last year.
Mortgage Brain’s data also shows a 3% reduction in cost for a 60% LTV three and five-year fixed product, a 3% drop in cost for an 80% LTV five-year fix and a 2% drop for a five-year fix with a 70% LTV.
With a current rate of 2.40%, the 3% cost reduction for the 60% LTV five-year fixed rate equates to an annual saving of £630.
A potential annualised saving of £216 over the past three months, or £468 compared to this time last year, is also offered from the 3% reduction in cost for the 60% LTV three year product.
Mark Lofthouse, CEO of Mortgage Brain, commented: “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.”