Buy-to-lets are stable

Buy to let mortgage costs remain stable with little movement recorded over the past three months according to a market snapshot.

As an example, the cost of a number of two- and five-year fixed rate BTL mortgages have remained static when compared to the costs at the beginning of December 2018.

By contrast, the cost of a three-year fixed BTL 70% loan-to-value mortgage is now two per cent higher than it was in December and equates to an annualised cost increase of £125.

Longer-term analysis, however, does show that the BTL market is still in a healthy position compared to this time three years ago – a period when the controversial three per cent additional homes stamp duty hike for landlords was introduced.

The cost of a 60% LTV five-year fixed BTL mortgage, for example, is now 11% lower than it was in March 2016, while a 60% LTV two and three year fixed are 7 and 10% cheaper.

As a ‘side analysis’ a comparison of the cost differences between BTL mortgages and mainstream residential products. As of March 1, the cost of an 80% LTV two-year fixed BTL mortgage is 25% higher than the same product type for a residential mortgage. Similarly, an 80% LTV five-year fixed BTL mortgage costs 19% more than its residential equivalent.

Our professional independent advisers are very experienced in dealing with all types of buy-to-let mortgages both single and multiple. We have access to a vast range of plans and would be happy to discuss your requirements.