Buy-to-let mortgage costs continue downward trend


Data released by Mortgage Brain have revealed that buy-to-let (BTL) mortgage costs continued to fall over the last three months, offering some festive cheer to landlords.

This year has seen a downward trend in the cost for the majority of BTL mortgages, with the greatest savings to be made on longer-term fixed-rate deals. Landlords could make a yearly saving of £360 on a 70% loan-to-value (LTV) five-year fixed rate on a £150,000 mortgage when compared to last year, as rates are on average 4.4% lower.

A two-year fixed rate is 1.7% lower than 12 months ago, saving £126 on a £150,000 60% LTV mortgage, and rates continue to stay low on 70% LTV two-year trackers with no significant changes over the last three months.

Mark Lofthouse, chief executive officer of Mortgage Brain, said: “Our latest BTL quarterly analysis shows some cost reductions over the last three months.”

“When viewed over the course of 2019, they show that there has been a continuous reduction in rates resulting in substantial price reductions, particularly for five-year fixed rate products.”

Rates expected to fall further in the new year

According to online mortgage broker Property Master, the cost of fixed-rate buy-to-let mortgages are set to fall further following the Conservative’s election win.

Angus Stewart, chief executive of Property Master, said: “…we believe there is every chance rates will fall still further. Firstly, the Conservative victory, even before it happened, strengthened the pound so removing one factor that could have encouraged the Bank of England to increase rates.

“Secondly, two members of the Bank’s Monetary Policy Committee voted for lower rates last time around, which makes us think downward is more likely to be the next movement in the base rate. The stars are aligned for lower mortgage rates for hard-pressed landlords in the New Year.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

house prices high

Buy-to-let mortgage costs continue downward trend


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.