A new snapshot of the buy to let mortgage market suggests costs have dropped further over the past three months as lenders compete for customers.

New figures from software supplier Mortgage Brain show that the cost of a two year fixed buy to let mortgage – at either 60 per cent or 70 per cent loan to value –  is now four per cent lower than it was in May this year.

The cost of a 70 per cent LTV two year tracker with a current rate of 2.69 per cent is some two per cent lower than it was three months ago, while its 60 per cent LTV counterpart is down in cost by one per cent over the same period.

In financial terms, the four per cent cost reduction for the 60 and 70 per cent two year fixed products equate to an annualised saving of £342 and £306 respectively over the past three months. 

The two per cent drop in the cost of the 70 per cent LTV two year tracker offers borrowers a potential £126 saving over the past quarter, or £252 when compared to this time last year.

There’s also further good news for BTL investors who favour longer term deals.

There’s been a three per cent reduction in cost for a 60 per cent LTV three and five year fixed product, a three per cent drop in cost for an 80 per cent LTV five year fixed, and a two per cent drop for a five year fixed with a 70 per cent LTV.