Fixed rate mortgages for buy-to-let landlords are up across the board, according to online mortgage broker Property Master.
The online mortgage broker’s mortgage tracker report found a month-on-month increase in average rates across all classes of two and five-year fixed rate mortgages for landlords.
According to Property Master’s research the monthly cost of a two-year fixed rate £150,000 buy-to-let mortgage increased between £2 and £5 a month between 1 October and 1 November, depending on whether the landlord was borrowing 50 per cent, 65 per cent or 75 per cent 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 since the report began in January 2018.
Property Master’s 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. The research tracks deals from 18 lenders in the buy-to-let market including Barclays, BM Solutions, RBS, The Mortgage Works, and Godiva.
Property Master chief executive Angus Stewart says: “Even though the Bank of England decided to hold the base rate this time around it does look as if buy-to-let 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 has the technology to really provide coverage across that increasingly broad waterfront.”