Buy-to-let has good stability

The cost of buy-to-let mortgages has remained mostly unaffected by the second phase of Prudential Regulation Authority changes, coupled with months of rate rise predictions, according to new data.

Despite another period of change and uncertainty, which led to the long-awaited rise in interest rates, several mainstream buy-to-let mortgages have reduced in cost since August – with some falling for the second consecutive quarter.

The price of a 60% and 70% loan-to-value (LTV) two-year buy-to-let (BTL) tracker, for instance, is now 1.6% lower than it was three months ago, this is indeed good news for the troubled landlords around the country.

Meanwhile, the cost of a two-year fixed-rate BTL mortgage with a 60% LTV is currently 1% lower than it was at the start of August. The fixed two-year at 70% and 80% LTV have remained steady, with no movement in cost in the last three months.

It’s a similar story with the cost of longer-term products, highlighting a 2% fall in the cost a 70% LTV three and five-year fixed BTL mortgage. Elsewhere, the cost of a 60% LTV three and five-year fixed deal, and an 80% LTV three year fixed, remain unchanged from August 2017.

With interest rates rising for the first time in just over 10 years, and further increases predicted, this could be a very good time to review your BTL mortgage/s. Fixed deals at present are very popular with landlords looking for longer term security.

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