Buy-to-Let mortgage rates could rise faster than expected

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Mortgages:

Mortgage Rates stability about to end, that’s according to
Property Master, the online broker’s latest research.

Research out today (Wednesday, May 8) from online mortgage
broker, Property Master, reveals the cost of fixed rate buy-to-let mortgages
varied by as little as £1 or £2 per month in either direction in May compared
to the previous month (May 1 to April 1, 2019.) 
The company went on to warn that this stability may be about to change
given last week’s Bank of England Inflation Report which signalled interest
rates would rise quicker than expected on the back of growth in wages, falling unemployment
and stronger GDP.

Angus Stewart, Property Master’s Chief Executive, said: “We
have been tracking the cost of buy-to-let fixed rate mortgages for almost 18
months now so have a large database. 
There have only been two movements in base rate over that period the
last one of which was in August 2018, so we have seen a lengthy period of
stability.  But the Governor of the Bank
of England signalled clearly last week that we should prepare for this
stability to end much quicker than was expected on the back of positive news
around wages, unemployment and stronger GDP.�

Mr Stewart continued: “Stable base rates and increased competition
in the lending market has helped to keep rates down in the buy-to-let market
but last week’s news means it really is time for landlords to start re-thinking
their finances.�

Property Master’s May 2019 Mortgage Tracker shows the cost
of five-year fixed rate buy-to-let mortgage offers for 50% of the value of a
property were unchanged between April and May of this year.  The cost of a five-year fixed rate buy-to-let
mortgage offers for 65% of the value of a property increased month on month by
just £2 per month.  Five-year fixed rates
buy-to-let mortgage offers for 75% of the value of a property fell by £2 per
month.  A similar picture emerged for
two-year fixed rate buy-to-let mortgage offers with the cost remaining the same
or going down by £1 or £2 per month.

Since the start of the year the cost of most categories of
fixed rate buy-to-let mortgage offers have varied by no more than £7 per month
either up or down.  The exceptions being
two and five-year fixed rate buy-to-let mortgage offers for 50% of the value of
the property which recorded year-on-year increases in monthly cost of £18 and
£25 respectively.

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 April 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.

www.property-master.com

Property Master
launched almost two years ago and is the UK’s first and only digital mortgage
brokerage service for UK buy-to-let landlords. Its innovative approach enables
private landlords to take control of their financing online for the first time
by matching their requirements on Property Master’s unique and complete
database of mortgage information and lending criteria. Founded by a group of
highly experienced financial services professionals, the company is directly
authorised and regulated by the Financial Conduct Authority (FCA).

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