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.
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).