Across the board fall in cost of fixed-rate buy-to-let mortgages

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Buy-to-Let Mortgages:

There has been an unprecedented across the board fall in the
cost of buy-to-let mores according to the latest research from online mortgage broker,
Property Master.

Research out today (Monday, July 8th) from online mortgage
broker, Property Master, has shown an across the board fall in fixed rate
buy-to-let mortgage rates.  The fall
follows previous signs that the mortgage market was beginning to expect an
interest rate rise. 

Today’s news, which Property Master’s Chief Executive
described as “unprecedented�, follows on from recent remarks by the Governor of
the Bank of England that the UK leaving the European Union without reaching
some sort of trade agreement may well require some sort of economic stimulus
such as a cut in rates to weather the shock of no deal.

Angus Stewart, Property Master’s Chief Executive, said: “We
have been tracking buy-to-let mortgage interest rates in this way for 18 months
and we have never seen before a fall across the board in this way.  It is quite unprecedented.  Last month we were seeing a drift upwards in
the cost of buy-to-let fixed rate mortgages but it may be that the market is
now expecting rates generally to fall rather than rise.�

Mr Stewart continued: “It is likely that lower rates are
also being fuelled by the continuing increase in the number of buy-to-let
mortgage products.  Whilst it is true
some lenders have exited the market others are boosting their range and
competing hard for new business. 

As landlords continue to be pressed on all sides by rising
regulatory cost such as the new Tenant Fees Act and falling tax reliefs today’s
news of a lowering of mortgage costs will be very much welcomed.�

Property Master’s July 2019 Mortgage Tracker shows the
biggest fall in monthly cost was for five-year fixed rate buy-to-let mortgage
offers for 75% of the value of a property. 
The monthly cost of this type of mortgage fell by £36 per month June to
July.  

Five-year fixed rates for 65% of the value of a property
fell month on month by £6.  Five-year
fixed rates buy-to-let mortgage offers for 50% of the value of a property fell
by just £3 per month.

Two-year fixed rate buy-to-let mortgages for 50% and 65% of
the value of a property fell by £5 each. 
Two-year fixed rate buy-to-let mortgages for 50% of the value of a
property fell by £8 per month.

The Property Master Mortgage Tracker follows a range of
buy-to-let mortgages for an interest only loan of £150,000.  Deals from 18 of some of the biggest lenders
in the buy-to-let market including Barclays, BM Solutions, RBS, The Mortgage
Works, Godiva and Precise (full list below) were tracked.  Figures for this month’s Mortgage Tracker
were calculated on deals available on July 1, 2019.

Property Master was launched almost two years ago and aims
to shake up the buy-to-let mortgage market currently served by around 12,000
mortgage brokers.  It has already
attracted financial backing from a broad range of private investors including a
minority stake being taken by LSL Property Services, whose estate and letting
agency brands include Your Move and Reeds Rains.

Property Master has automated what was a manual, complex
process to provide landlords with a free easy to use mortgage search tool which
provides a mortgage quote that is pre-screened against each lender’s specific
and changing criteria.

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