As the Bank of England prepares for its first Monetary Policy Committee meeting on interest rates of 2019 this coming Thursday (February 7) latest research out today (Monday, February 4, 2019) from online mortgage broker, Property Master, shows the cost of three out of six categories of fixed rate buy-to-let mortgages had increased compared to last month but the remaining three categories had fallen in cost.
Five-year fixed rate mortgages, which have been steadily gaining in popularity amongst buy-to-let landlords, remain the best value for landlords with falls in cost year on year of up to £24 a month. Property Master’s February 2019 Mortgage Tracker shows five-year fixed rate offers for 65% and 75% of the value of a property are all down year on year.
Savings for each of these mortgages respectively were £24 and £15 per month. The cost of most two-year fixed rates tracked were up year on year with the cost of a two-year fixed rate for 50% of the value of a property up as much as £40 per month.
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 February 1, 2019.
Angus Stewart, Property Master’s Chief Executive, said: “Brexit continues to cloud the outlook for interest rates, but many commentators are pencilling in a move upwards in May. The situation is more confusing still for landlords given that it is the start of the year and there is a flurry of new deals out from lenders – some better than others.”
Mr Stewart continued: “Landlords shopping around need also to remember some lenders set higher interest cover ratios, requiring rents to cover at least 145% of their mortgage payments. Others are wary of lending to landlords with more than three properties.
Then there is the need to factor in product fees which our research shows can average between £658 and £1,212. Property Master’s advanced algorithms live search for our customers matching their individual requirements against the lending criteria of 97 lenders.”
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.