Fri 18 Aug 2017 View all news articles

Investor outlook favourable as BTL rates drop again

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.”

Source: Property Reporter

Thinking about investing in a buy-to-let property? You can search our availability here.

As leading Wirral estate agents and lettings agents we have plenty to talk about and like to give our opinions on a few things too! Read about what we have to say, our latest news and industry news.