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Graham Awards


Buy to let mortgage fees falling thanks to increased competition

The costs of lender arrangement fees, valuation fees and legal costs attached to new buy to let mortgages are falling as institutions heighten their competition for a share of the market.

On average these additional fees now add an additional 0.48 per cent to the headline rate of interest paid by a borrower, down from 0.52 per cent three months ago. 

The survey, by Mortgages for Business, suggests that this downward trend can now be seen even in high loan to value products which had previously seen rises up to 0.90 per cent of the headline rate. 


In the third quarter of this year the average impact of costs on these high LTV rates was down to 0.67 per cent after three successive falling quarters.

The index also revealed that although absolute products numbers by initial term (that is, one to five year rates) have risen across all categories, the market share of two year products has declined year on year from 54 per cent in Q3 2014 to 43 per cent today. 

Longer term products have gained greater share, says Mortgages for Business. 


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