Buy to Let Mortgages are now cheaper than they were three years ago

Anna Bibby, 03 April 2019

The cost of buy to let mortgages has remained stable and works out cheaper when compared to figures in March 2016. According to a snapshot from the mortgage software company, Mortgage Brain, there has been very little movement in the cost of BTL mortgages over the past three months, despite the recent changes in the market.

Taking data from the beginning of December 2018 until March 2019, they also found that the cost of a 70% loan-to-value (LTV) three-year deal rose by 2% since December but that of a five-year deal fell by 1%.

Mortgage Brain also compared its findings to those from March 2016 and found that buy to let mortgages from this year work out significantly cheaper. For example, a 60% LTV five-year fixed buy to let mortgage costed 11% more in March 2016 than it did in March 2019. This was closely followed by a 60% LTV three-year fixed which was 10% cheaper in 2016 and an LTV two-year worked out 7% cheaper than this year.

The company also reviewed and compared the cost differences between buy to let mortgages and other mainstream residential products. They found that the cost of a residential 80% LTV five-year fixed mortgage was 25% lower than a buy to let version of the same product, as of the 1st March.

The CEO of Mortgage Brain, Mark Lofthouse, said of these findings: “Although our latest BTL product analysis has shown little movement over the last three months, potential landlords and BTL investors can continue to make the most of the record lows in terms of rates and costs in the BTL market”

“With a host of new regulations and tax changes coming into play over the next few months, including the ongoing uncertainty surrounding Brexit and the potential for further base rate rises, the BTL landscape in 2019 is very complex. The need for specialist advice and support from brokers, therefore, has never been greater.”

These findings will be good news for investors, considering the complicated year ahead for the buy to let market. Despite the number of new regulations coming into force this year and the uncertainty of Brexit looming over the country, investors are still seeing the potential of investing in buy to let property in the current climate. There is still a strong demand for rental properties and the indications for the future of the buy to let market are, overall, very positive. It has also been reported that many landlords are actively looking to expand their portfolio this year.

With a lot of investors in a positive mindset for the year ahead, many are taking smart measures to avoid any complications with the new regulations coming into effect this year. These include investing as a limited company and taking advantage of incentives offered by lenders.

Investing in property is still an attractive venture for potential investors, they just must be smart and take advantage of the current low costs of buy to let mortgages.

Are you looking for your next buy to let opportunity? Get in touch with us today!


Buy to Let Mortgages are now cheaper than they were three years ago

Anna Bibby, 03 April 2019

The cost of buy to let mortgages has remained stable and works out cheaper when compared to figures in March 2016. According to a snapshot from the mortgage software company, Mortgage Brain, there has been very little movement in the cost of BTL mortgages over the past three months, despite the recent changes in the market.

Taking data from the beginning of December 2018 until March 2019, they also found that the cost of a 70% loan-to-value (LTV) three-year deal rose by 2% since December but that of a five-year deal fell by 1%.

Mortgage Brain also compared its findings to those from March 2016 and found that buy to let mortgages from this year work out significantly cheaper. For example, a 60% LTV five-year fixed buy to let mortgage costed 11% more in March 2016 than it did in March 2019. This was closely followed by a 60% LTV three-year fixed which was 10% cheaper in 2016 and an LTV two-year worked out 7% cheaper than this year.

The company also reviewed and compared the cost differences between buy to let mortgages and other mainstream residential products. They found that the cost of a residential 80% LTV five-year fixed mortgage was 25% lower than a buy to let version of the same product, as of the 1st March.

The CEO of Mortgage Brain, Mark Lofthouse, said of these findings: “Although our latest BTL product analysis has shown little movement over the last three months, potential landlords and BTL investors can continue to make the most of the record lows in terms of rates and costs in the BTL market”

“With a host of new regulations and tax changes coming into play over the next few months, including the ongoing uncertainty surrounding Brexit and the potential for further base rate rises, the BTL landscape in 2019 is very complex. The need for specialist advice and support from brokers, therefore, has never been greater.”

These findings will be good news for investors, considering the complicated year ahead for the buy to let market. Despite the number of new regulations coming into force this year and the uncertainty of Brexit looming over the country, investors are still seeing the potential of investing in buy to let property in the current climate. There is still a strong demand for rental properties and the indications for the future of the buy to let market are, overall, very positive. It has also been reported that many landlords are actively looking to expand their portfolio this year.

With a lot of investors in a positive mindset for the year ahead, many are taking smart measures to avoid any complications with the new regulations coming into effect this year. These include investing as a limited company and taking advantage of incentives offered by lenders.

Investing in property is still an attractive venture for potential investors, they just must be smart and take advantage of the current low costs of buy to let mortgages.

Are you looking for your next buy to let opportunity? Get in touch with us today!