Whilst a relatively modest increase, it is the first month-on-month increase across all types of fixed-rate loans tracked and recorded by Property Master this year.
Fixed-rate buy-to-let (BTL) mortgages look to be on an upward trend across the board, according to research out last week from online mortgage broker, Property Master.
The online broker’s Mortgage Tracker report* has been compiled every month since January of this year, but this is the first time a month-on-month increase has been registered across all classes of two and five-year fixed terms.
According Property Master’s research, the monthly cost of a two-year fixed rate BTL mortgage for a typical amount of £150,000 increased between £2 and £5 a month, depending on whether the landlord was borrowing 50%, 65% or 75% of the value of the property.
The same calculation for a five-year fixed rate had increased from between £4 and £5 a month. Whilst relatively modest it is the first time a month on month increase across all types of fixed rate loans tracked has been recorded.
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.
This particular Mortgage Tracker figures were calculated on rates on November 1st, the day the Bank of England’s Monetary Policy Committee announced a decision to hold the base rate at 0.75%.
Angus Stewart, Property Master’s Chief Executive, said:
“Even though the Bank of England decided to hold the base rate this time around it does look as if BTL fixed rates are beginning to trend up following the previous increase in the summer. Also, the Bank reiterated its view that interest rates generally will need to go up further over the coming months. Private landlords will need to shop around to get the best deal but they may find those good deals become over time more difficult to find.”
“That said competition amongst buy-to-let lenders is still healthy and we are seeing new developments and deals coming out all the time. There are over 1,000 fixed rate mortgages on offer for landlords so it is important landlords look for a broker that had the technology to really provide coverage across that increasingly broad waterfront.”
Property Master, launched 18 months ago, says it 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).
*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.