Buy to Let Mortgage Rates

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Buy to Let:

The BTL mortgages rates have trended upwards following the bank base rate rise in August.

August’s 0.25% increase in the bank base rate has begun to feed through to buy-to-let mortgage rates, according to research carried out this week from online mortgage broker, Property Master. The company uses algorithms to match the requirements of individual private landlords against the entire buy-to-let mortgage market.  The news comes as the Monetary Policy Committee prepares to meet again Thursday 13^th September, 13.

Average standard variable rates for buy-to-let mortgages, unsurprisingly, saw the biggest month on month increase with the cost of an interest only loan of £150,000 jumping from £603 per month to £620 per month.

For average five-year fixed rate loans, increasingly popular with private landlords looking to manage their outgoings over time, the cost of a similar loan rose from £348 per month to £350 per month. That’s if the customer was looking to borrow 65% of the value of the property, and it goes from £423 per month to £425 per month if 75% of the property’s value was required.

The Property Master Mortgage Tracker* follows a range of buy-to-let mortgages for an interest only loan of £150,000. The rates and costs recorded include product and application fees.  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.

Angus Stewart, Property Master’s Chief Executive, said:

“The move by the Bank of England to normalise borrowing rates following the last market crash seems to be truly underway and it is beginning to feed through to buy-to-let mortgage rates which up and until now have been relatively stable.  The MPC meets again this coming Thursday but market commentators are not yet expecting another rate rise quite so soon.

“However, private landlords, especially those on standard variable rates that have seen a big jump in cost month on month, should really be carefully evaluating their finance requirements.  Whilst increased competition has helped to keep costs down to some extent the trend is now upwards and we would expect keenly priced fixed rates to be snapped up.�

Property Master was launched a year 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.  Over 25,000 landlords have already tried the Property Master service and a typical remortgage saving is around £1,800.

Property Master launched last year 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).

*Property Master tracked the average cost of mortgages across the following lenders: Accord, Barclays, BM Solutions, Godiva Mortgages, Halifax, HSBC, Leeds BS, Metro Bank, NatWest, Platform Mortgages, Precise Mortgages, Principality BS, Royal Bank of Scotland, Santander for Intermediaries, Skipton BS, The Mortgage Works, TSB and Virgin Money.

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