Research out today (Thursday, September 12th) from online mortgage broker, Property Master, has revealed another across the board fall in fixed rate buy-to-let mortgage rates. The fall comes just as the Bank of England meets for the last time to rule on the base rate ahead of the October 31st Brexit deadline.
Angus Stewart, Property Master’s Chief Executive said: “Once again we have seen the cost of buy-to-let mortgages fall across all the categories we track. At the moment lenders in this marketplace have a glut of money to lend.
The current downward pressure on rates in the money markets means they are able to source funds cheaply at historically low interest rates. Secondly, some lenders have also drawn in money from the consumer market by launching headline-grabbing savings rates which whilst still low are relatively attractive.”
Mr Stewart continued: “More generally no-one really wants to predict the outcome of Brexit but it may be that certainty, one way or another, is just around the corner. Once the market is more certain about what is happening this volatility and the bargains it has thrown up will probably come to an end. Landlords may not have long to benefit.
Even if a landlord’s fixed rate is not yet due to expire it would be worth looking at what is currently available. In some situations, it might be worth paying to exit an existing fixed rate deal early. With some lenders willing to hold a new product deal for up to six months there is an opportunity to apply now and see what happens with rates. It will pay most landlords to at least review their position while rates are low.”
Property Master’s September 2019 Mortgage Tracker shows the biggest fall in monthly cost was for two-year fixed rate buy-to-let mortgage offers for 50% of the value of a property. The monthly cost of this type of mortgage fell by £24 per month August to September. Two-year fixed rates for 65% of the value of a property fell month on month by £8. Two-year fixed rates buy-to-let mortgage offers for 75% of the value of a property fell by £3 per month.
The more popular five-year fixed rate buy-to-let mortgages also fell across all categories tracked. The monthly cost of a five-year fixed rate for 50% of the value of a property fell by £14 per month August to September. Five-year fixed rate buy-to-let mortgages for 65% of the value of a property fell by £11 per month and five-year fixed rate buy-to-let mortgages for 75% of the value of the property fell by £6 per month.
The Property Master Mortgage Tracker follows a range of buy-to-let mortgages for an interest only loan of £150,000. Deals from 18 of some of the biggest lenders in the buy-to-let market including Barclays, BM Solutions, RBS, The Mortgage Works, Godiva and Precise (full list below) were tracked. Figures for this month’s Mortgage Tracker were calculated on deals available on September 1, 2019.
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 already attracted financial backing from a broad range of private investors including a minority stake being taken by LSL Property Services, whose estate and letting agency brands include Your Move and Reeds Rains.
Property Master has automated what was a manual, complex process to provide landlords with a free easy to use mortgage search tool which provides a mortgage quote that is pre-screened against each lender’s specific and changing criteria.