The cost of buy to let mortgages remain at record lows and - with little movement in costs and rates over the past three months - it seems as if the sector is set for a stable summer according to Mortgage Brain.
A 60 and 70 per cent loan to value two year tracker and a 60 per cent loan to value three and five year fixed, have, for example, all remained stable over the past three months with BTL mortgage costs remaining static compared to the costs at the beginning of March.
The cost of a 70 per cent LTV three and five year fixed rate BTL mortgage fell by just one per cent over the same period - a reduction which, whilst marginal, offers BTL investors an annualised saving of £108 and £126 respectively on a £150,000 mortgage.
By contrast, the cost of a 60 and 80 per cent LTV two year fixed and an 80 per cent LTV two year tracker and three year fixed, have all increased by one per cent since March.
The biggest movement over the past three months, however, comes in the form of a 70 per cent LTV two year fixed, which now costs three per cent more than it did in March and equates to an annualised cost increase of £198.
The BTL market still remains in a healthy position compared to this time last year, however, with Mortgage Brain’s data showing cost reductions for the majority of BTL products over the past 12 months.
“Our latest BTL product data analysis shows that while there’s little to get excited about in terms of rate and cost movement over the past three months, the longer term analysis is still favourable with the majority of products benefiting from costs reductions over the past 12 months” according to Mortgage Brain chief executive Mark Lofthouse.
“The Bank Of England’s decision to hold base rates last month should also be welcome news to borrowers as they can continue to make the most of the record lows in terms of costs in the BTL market.”