Most buy to let fixed rate mortgages cheaper now than a year ago

Most buy-to-let fixed rate mortgages are currently cheaper than they were a year ago - some by as much as £29 per month for a typical mortgage of £150,000.

Five-year fixed rate mortgages, which have been steadily gaining in popularity amongst buy-to-let landlords, have seen the most consistent falls according to data from online broker Property Master.

It shows five-year fixed rate offers for 50, 65 and 75 per cent of the value of a property are all down over a year ago.  

Savings for each of these mortgages respectively were £8, £29 and £21 per month.  

The cost of many two-year fixed rates were up year on year although there was a saving of £11 per month for landlords borrowing 65 per cent of the value of a property.

The data tracks a range of 18 buy-to-let mortgages for an interest only loan of £150,000. 

“Whilst interest rate prediction given the uncertainty around Brexit is very difficult indeed, the Bank of England has given a clear signal that rates must rise at some point and most commentators are expecting this to happen in the coming year” explains Angus Stewart, Property Master’s chief executive. 

“The current low rates, particularly for five year fixed mortgage products, suggest that landlords should give serious consideration to remortgaging now to minimise the rate uncertainty that Brexit might bring.”

Property Master, launched two years ago, has a minority stake taken by LSL Property Services, whose estate and letting agency brands include Your Move and Reeds Rains.