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Stuart Mosley No Comments

According to the latest quarterly product data analysis by Mortgage Brain, it has been revealed that although the buy-to-let market remains to be largely stable, mortgage costs have started to decline.

Moreover, the report shows that the cost of a 60% LTV two-year tracker buy-to-let mortgage, is now 3% lower than it was three months ago. The same product with a 70% LTV now costs 2% less than it did in March, whereas the 80% LTV is now 0.5 lower.

The fall in costs are marginal, but they do offer buy-to-let investors a potential annualised saving of £234, £144, and £36 respectively on a £150k mortgage.

On the other hand, borrowers that are looking for a longer-term deal may also benefit from the small reduction in costs over the past quarter with Mortgage Brain’s recent data (as of 1st July 2019), revealing a 2% reduction in cost for a 60% and 80% LTV five-year fixed buy-to-let mortgage.

A decline in cost up to 1% has also been recorded for a 605 and 70% LTV three-year fixed buy-to-let mortgage.

Furthermore, the recent report from Mortgage Brain’s analysis reveals the true cost difference between the buy-to-let mortgages in comparison to the mainstream residential products. The recent statistics reveal the cost of the 80% LTV five-year fixed product is 19% higher than the same product type for a residential mortgage.

In addition to this, in comparison to a 60% LTV two-year tracker buy-to-let product, it will cost 8% more than its residential equivalent, while a 60% LTV three-year fixed costs 6% more.

 

About Stuart Mosley

Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander.  He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.

If you would like to book an appointment then please get in touch and we can arrange a suitable time to discuss further.  We can arrange appointments at a place and time suitable to you, we can discuss your options over the phone or if you prefer email, then this is fine with us.