Buy-to-let (BTL) mortgage rates continue to drop but at a slower rate than in previous months, according to the latest Property Master research.

The online mortgage broker reports that costs for buy-to-let mortgages have fallen in four of six categories, with interest rates staying the same for the remaining two categories.

The biggest fall in monthly cost was for a five-year fixed rate buy-to-let mortgage at 50% Loan-to-Value (LTV), dropping by £25 per month between September and October.

Five-year fixed rate BTL mortgage rates at 65% LTV fell by a value of £10 per month, while the cost of a five-year fix at 75% fell by just £1 per month.

The rate for two-year fixed deals at 75% LTV dropped by £4 per month, while the rates for two-year fixes at 50% and 65% remained unchanged between September and October.

“Lenders have been awash with funds recently which has been driving competition and lower mortgage costs,” says Angus Stewart, Property Master’s chief executive.

“The biggest influencer on interest rates going forward will be predicting the future strength of the UK economy which whilst Brexit remains unresolved is obviously very difficult indeed.”

He says it remains unclear whether the Bank of England will be required to reduce the base interest rate further to stimulate the economy.

“This will be driven by whether or not we leave the EU at the end of this month and if we do whether or not it is with a deal,” says Stewart.

He adds that the Bank of England’s Monetary Policy Committee’s next meeting scheduled for November 7 will be a ‘critical review point’.

Property Master was launched just over two years ago and has attracted financial backing from LSL Property Services.