View more on these topics

Product fees wipe out landlords’ remortgaging savings: Property Master

Landlords switching to competitive fixed rate buy-to-let mortgages could find the savings they make wiped out by hefty product fees, according to Property Master.

The online broker’s Mortgage Tracker report has been compiled every month since January 2018, but this is the first month it has calculated average product fees. The research shows these can range from a one-off charge of £621 up to £1,212.

According to Property Master, the average product fee for a two-year fixed rate mortgage for a typical amount of £150,000 at 75 per cent loan-to-value was £621. This fee rose to £1,065 if 50 per cent of the value of the property was being borrowed.

The average product fee for a five-year fixed rate mortgage for the same amount at 75 per cent LTV was £745, but jumped to £1,212 at a LTV of 50 per cent.

The Property Master Mortgage Tracker follows a range of buy-to-let mortgages for an interest only loan of £150,000. This month’s figures were calculated on deals available on 1 December.

Property Master chief executive Angus Stewart says: “Understandably landlords will be attracted to the headline rates lenders quote but it is important also to factor in additional costs, in particular product fees. Landlords may also find other fees going under other names such as an application fee, or a booking fee or an account fee. When shopping around landlords need to make sure they have the full facts and the total cost in front of them.”

“With further rate rises on the horizon landlords coupled with a range of increased regulator and tax costs, landlords are becoming more aware than ever of the need to watch their finances. There are certainly good deals out there but make sure you know the all the costs involved before signing a new finance deal.”

Recommended

Aldermore extends support for first-time buyers

Aldermore has broadened support for first-time buyers attempting to get onto the property ladder. The specialist lender has introduced two new lending tiers across its Help to Buy equity mortgage range. The new products are named ‘Level 2’, with rates starting from 4.78 per cent on up to 75 per cent LTV, and ‘Level 3’, […]

calendar

TMW launches 10-year fixed rates for landlords

The Mortgage Works has introduced a new range of 10-year fixed rate mortgages with rates starting at 2.74 per cent. The specialist buy-to-let arm of Nationwide Building Society is also cutting stress rates for selected longer term fixed rates and like-for-like remortgage products. The 2.74 per cent fixed rate is available up to 65 per […]

Real-estate-agent-house-for-sale-sold-700.jpg

Emoov enters administration

Online estate agent Emoov has entered administration. Emoov has appointed Peter Whalley and Tom Russell of James Cowper Kreston as administrators. According to Estate Agent Today, Emoov founder and chief executive officer Russell Quirk sent an email to staff yesterday. It said: “At 1pm today 3 December 2018 I held a call with Emoov board […]

Budget summary – March 2016

This week’s Budget looked as if it would be a difficult one for the Chancellor, with disappointing economic numbers and the need to avoid ruffling feathers ahead of June’s in/out referendum. Nevertheless, Mr Osborne did spring a few surprises, including some tax reductions. So how does this budget affect you? If you are – or […]

Newsletter

News and expert analysis straight to your inbox

Sign up