Tue 15 Jan 2019 View all news articles
The majority of buy-to-let fixed rate mortgages are currently down year-on-year – some by as much as £29 per month for a typical mortgage of £150,000, according to Property Master.
While buy-to-let landlords are being advised to prepare themselves for two potential bank base rate increases this year, the online mortgage broker’s January 2019 Mortgage Tracker showed five-year fixed rate offers for 50%, 65%, and 75% of the value of a property are all down since the start of the year.
In fact, five-year fixed rate mortgages, which have been steadily gaining in popularity amongst buy-to-let landlords, have seen the most consistent falls. Savings for the 50%, 65% and 75% mortgages were £8, £29 and £21 per month respectively.
Meanwhile, the cost of many two-year fixed rates were up year on year, although there was a saving of £11 per month for landlords borrowing 65% of the value of a property.
Property Master’s Mortgage Tracker follows a range of buy-to-let mortgages for an interest-only loan of £150,000. Deals from 18 of some of the biggest lenders in the buy-to-let market – including Barclays, BM Solutions, RBS, The Mortgage Works, Godiva and Precise – were tracked. Figures for this month’s Mortgage Tracker were calculated on deals available on January 1 2019.
Angus Stewart, chief executive of Property Master, commented: “Whilst interest rate prediction given the uncertainty around Brexit is very difficult indeed, the Bank of England has given a clear signal that rates must rise at some point and most commentators are expecting this to happen in the coming year.”
He said that the current low rates, particularly for five-year fixed mortgage products, suggest that landlords should give serious consideration to remortgaging now to minimise the rate uncertainty that Brexit might bring.
Launched almost two years ago, Property Master uses algorithms to match the requirements of individual private landlords against the entire buy-to-let mortgage market which is currently served by around 12,000 mortgage brokers.
The firm aims to offer landlords a free, easy-to-use mortgage search tool which provides a mortgage quote that is pre-screened against each lender’s specific and changing criteria.
It has already attracted financial backing from a wide range of private investors including a minority stake being taken by LSL Property Services, whose estate and letting agency brands include Your Move and Reeds Rains.
Source: Property Investor Today
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