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Graham Awards


Good news: Buy to let mortgage costs continue to drop

Mortgage costs in the buy to let market have continued to fall over the last three months - a trend seen across much of 2019.

The cost of a 60 per cent loan to value (LTV) two year fixed buy to let mortgage, for example, is now 1.7 per cent lower than it was 12 months ago. 

The reduction in costs represents an annual saving of £126 on a £150,000 mortgage.


Rates also remain low on a 70 per cent loan to value two year tracker buy to let mortgage, with no appreciable change over the last three months. 

However costs are four per cent lower than 12 months ago, equivalent to an annual saving of £324 on a £150,000 mortgage.

The Mortgage Brain data shows that the greatest reductions in savings rates are on longer term fixed mortgages, meaning borrowers can benefit from better annualised savings. 

Mortgage Brain’s latest analysis also reveals the differences between buy to let mortgages when compared to mainstream residential products, with the cost of BTL mortgages higher. 



The latest set of data - as at December 1 - shows that the cost of an 80 per cent loan to value two-year fixed BTL product is almost 30 per cent higher than the same product for an owner occupier’s mortgage and for a five-year fixed it is 18 per cent higher.


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