5-year fixed rate buy-to-lets cost less while costs for 2-year fixes are up
The cost of 5-year fixed rate buy-to-let mortgages are down year-on-year while 2-year fixed rates are up, Property Master’s Mortgage Tracker has found.
5-year fixed rate offers for 65% and 75% loan-to-value are all down year-on-year. Savings for each of these mortgages respectively were £24 and £15 per month.
The cost of most 2-year fixed rates tracked were up year-on-year, with the cost of a 2-year fixed rate for 50% of the value of a property up as much as £40 per month.
Angus Stewart, Property Master’s chief executive, said: “Brexit continues to cloud the outlook for interest rates, but many commentators are pencilling in a move upwards in May.
“The situation is more confusing still for landlords given that it is the start of the year and there is a flurry of new deals out from lenders – some better than others.”
“Landlords shopping around need also to remember some lenders set higher interest cover ratios, requiring rents to cover at least 145% of their mortgage payments. Others are wary of lending to landlords with more than three properties.
“Then there is the need to factor in product fees which our research shows can average between £658 and £1,212. Property Master’s advanced algorithms live search for our customers matching their individual requirements against the lending criteria of 97 lenders.”
Property Master was launched almost two years ago and aims to shake up the buy-to-let mortgage market currently served by around 12,000 mortgage brokers. It has automated what was a manual, complex process to provide landlords with a free mortgage search tool which provides a mortgage quote that is pre-screened against each lender’s specific and changing criteria.