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Graham Awards


Buy to let mortgages now much cheaper than three years ago

Buy to let mortgage costs remain stable with little movement recorded over the past three months according to a market snapshot by Mortgage Brain.

It says that, for example, the cost of a number of two and five year fixed rate BTL mortgages have remained static when compared to the costs at the beginning of December 2018.

By contrast, the cost of a three year fixed BTL 70 per cent loan-to-value mortgage is now two per cent higher than it was in December and equates to an annualised cost increase of £125.


Mortgage Brain’s longer-term analysis, however, does show that the BTL market is still in a healthy position compared to this time three years ago – a period when the controversial three per cent additional homes stamp duty hike for landlords was introduced.

The cost of a 60 per cent LTV five year fixed BTL mortgage, for example, is now 11 per cent lower than it was in March 2016, while a 60 per cent LTV two and three year Fixed are seven and 10 per cent cheaper.

As a ‘side analysis’ Mortgage Brain has also compared the cost differences between BTL mortgages and mainstream residential products.

As of March 1, the cost of an 80 per cent LTV two year fixed BTL mortgage is 25 per cent higher than the same product type for a residential mortgage.

Similarly, an 80 per cent LTV five year fixed BTL mortgage costs 19 per cent more than its residential equivalent.


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