Cost of 5-year fixed rate BTL mortgage falls

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Buy-to-Let Mortgages:

Latest research out today (Wednesday, April 3rd) from online
mortgage broker, Property Master, the digital start up that uses algorithms to
match the requirements of individual private landlords against the entire
buy-to-let mortgage market,  reveals that
the cost of many popular five-year fixed rate buy-to-let mortgages has fallen
back again after a sharp month on month spike February to March.  Many of these mortgages are now cheaper than
they were a year ago in April 2018. 
Product fees for five-year fixed rate mortgages have though leapt
year-on-year – sometimes by as much as £335.

Property Master’s April 2019 Mortgage Tracker shows the cost
of five-year fixed rate offers for 50% of the value of a property fell by £8 a
month between March and April.  Year on
year this type of mortgage was down in cost by £28 a month.  The cost of a five-year fixed rate for 65% of
the value of a property fell by £4 a month but by £18 per month when compared
to the cost a year ago in April 2018. 
Five-year fixed rates for 75% of the value of a property remained the
same at £408 March to April but year on year fell by £18 a month.

Almost all the categories of fixed-rate buy-to-let mortgages
being tracked showed a sharp year-on-year increase though in average product
fees.  Fees for a two-year fixed rate for
50% of the value of a property leapt from £714 in April 2018 to £1,599 today –
an increase of £885.  The other largest
increase in average product fee was for five-year fixed rates for 50% of the
value of a property which increased from £1,164 in April 2018 to £1,499 today –
an increase of £335.

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.

Angus Stewart, Property Master’s Chief Executive, said: “It
is good news that the type of deals many landlords favour have fallen back a
little in cost after last month’s increase. 
Better still the headline rate for many of these offers are actually
less than they were a year ago.  However,
there is something of a catch in the increase in many product fees.  Applying for a buy-to-let mortgage can be a
complex process and it is important landlords compare the total cost of the
mortgage they are offered.�

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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