Wed 15 Nov 2017 View all news articles
The second phase of the Prudential Regulation Authority changes, coupled with the recent interest rate hike, appear to have had minimal impact on the cost of buy-to-let mortgages, according to fresh data from Mortgage Brain.
Despite going through another period of change and uncertainty, a number of mainstream buy-to-let mortgages are down in cost since August.
A similar trend can be seen in the cost of longer term products with Mortgage Brain’s latest data revealing a 2% decline in the cost of a 70% loan-to-value (LTV) three and five-year fixed buy-to-let mortgage, while the cost of a 60% LTV three and five-year fixed, and an 80% LTV three-year fixed, all remain unchanged when compared to August 2017.
Mark Lofthouse, CEO of Mortgage Brain, said: “With interest rates rising for the first time in just over 10 years, and further increases predicted, this could be one of the last times that our analysis reports reductions in the cost of mainstream buy-to-let mortgages.
“While our three, six and 12 month analysis all show potential cost savings for buy-to-let investors, we’re already starting to see ripples across the market following this month’s rate rise.
“Our most recent monthly data, for example, shows signs of a number of cost increases when compared to last month and it will be interesting to see how this develops in the coming months.”
Source: Landlord Today
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