As customers brace themselves for a possible Bank of England rate rise early next month. The Monetary Policy Committee will announce any rates on August 2nd.
There is positive news from research out today (18th, July 2018) 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.
This Property Master research shows the cost of five-year fixed-rate mortgages, increasingly popular with private landlords, and they have continued to fall since the start of the year.
The cost of five-year fixed buy-to-let mortgage rates is down on the start-of-year levels, despite fears of an imminent rate rise, that’s according to online mortgage broker, Property Master.
Five-year fixed rate mortgages have been steadily gaining in popularity amongst buy-to-let landlords and these are the rates that have best retained their competitive price.
The Property Master Mortgage Tracker follows a range of buy-to-let mortgages for an interest only loan of £150,000 and this shows five-year fixed rate offers for 50%, 65% and 75% of the value of a property have continued to fall since the start of the year.
Savings for each of these mortgages respectively were £11, £24 and £13 per month. Two-year fixed rates remained relatively stable although savings were available for landlords borrowing 65% of the value of a property.
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:
“Buy-to-let mortgage rates have remained competitive despite gathering fears of a rise in interest rates. Any increases in cost that we have recorded in our research, mainly for two-year fixed rates, have been moderate whilst the cost of the increasingly popular five-year fixed rates has continued to fall.
“Much of this has been the result of increased competition in the marketplace, recent figures recorded a 13% increase in the number of buy-to-let mortgages on offer. Landlords are also benefiting from greater innovation as lenders respond to the changing complexity of regulation in this marketplace.”
Mr Stewart continued:
“Nevertheless, at some point the Bank of England will have to move rates. There are only four more meetings this year of the Monetary Policy Committee at which a rate rise could be announced so landlords looking to refinance should not assume the deals they see currently on the market will continue to be available.”
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 re-mortgage saving is around £1,800.
About Property Master
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).