The second phase of PRA changes and rate rise predictions seem to have had little effect on the cost of buy-to-let mortgages, data from Mortgage Brain has found.
Despite going through another period of change and uncertainty, a number of mainstream BTL mortgages are down in cost since August.
A similar trend is seen in the cost of longer-term products, with Mortgage Brain’s latest data showing a 2% drop in the cost of a 70% LTV 3 and 5-year fixed BTL mortgage.
Mark Lofthouse, chief executive 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 BTL mortgages.
“While our three, six and 12 month analysis all show potential cost savings for BTL 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.”