The cost of a 5-year fixed rate buy-to-let mortgage at 70% loan-to-value is 8% cheaper than it was in March 2016, Mortgage Brain analysis shows.
With a current rate of 2.80% this equates to an annual saving of £738 on a £150,000 mortgage.
The cost of 70% LTV 2 and 3-year fixes have fallen by around 6% to average at 2.89% and 2.64%, while at 60% LTV 5-year fixes are down 5%, 3-year fixes 4% and 2-year fixes 2% in six months.
Mark Lofthouse, chief executive of Mortgage Brain, said: “With further interest rate cuts predicted by the Bank of England it will be interesting to see what happens to mortgage rates and costs over the next few months.
“There’s no doubt though that on the whole borrowers and potential BTL investors are in a great position to take advantage of the low rates and cost reductions that we’re seeing.”
Not that buy-to-let mortgages have cheapened in every category however, as 2-year trackers to 80% LTV are now 14% more expensive than in March 2016 at 2.79%.
At 1.80% the cost of a two year tracker with a 60% LTV is now 3% higher, while the same product to 70% LTV is 1% higher.