Mortgage costs have remained stable in the buy-to-let market with little movement recorded over the past three years despite many changes in the market, Mortgage Brain’s buy-to-let product data analysis has found.
The data, as of 1 March 2019, showed that the cost of a number of 2 and 5-year fixed rate mortgages have remained static when compared to the costs at the beginning of December 2018.
The cost of a 70% LTV 2-year tracker and a 70% LTV 5-year fixed fell by 2% and 1% over the same period. The reductions in cost – while marginal – do offer buy-to-let investors a potential annual saving of £126 and £72 respectively on a £150,000 mortgage.
By contrast, the cost of a 3-year fixed buy-to-let 70% LTV is now 2% higher than it was in December and equates to an annual cost increase of £125.
Mortgage Brain’s longer-term analysis, however, does show that the buy-to-let market is still in a healthy position compared to this time three years ago – a period when the controversial 3% stamp duty hike for landlords was introduced.
The cost of a 60% LTV 5-year fixed buy-to-let mortgage, for example, is now 11% lower than it was in March 2016, while a 60% LTV 2 and 3-year fixed are 7% and 10% cheaper.