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New data from Mortgage Brain has revealed a number of cost increases over the past three months for mainstream buy to let mortgages.
Further pressure is being heaped on UK landlords, according to new data from Mortgage Brain. The cost of a two-year buy to let tracker at 60 per cent and 70 per cent LTV is now up 3 per cent in comparison to November 2017. With a current rate of 1.79 per cent and 2.14 per cent respectively the 3 per cent rise is equivalent to an annualised increase of £216 on a £150,000 mortgage.
The cost of an 80 per cent LTV two-year fixed rate, at 3.44 per cent, has also risen. It is now 2 per cent higher than it was three months ago. Furthermore, its 60 per cent and 70 per cent LTV counterparts as well as 70 per cent LTV three year fixes have all seen rises of 1 per cent in comparison to November 2017.
However, borrowers seeking a longer term deal are in luck, as the data shows a 2 per cent reduction in cost since November for a 70 per cent LTV five-year fixed rate as well as a 1 per cent cost reduction for the same product at 60 per cent and 80 per cent LTV.
The buy to let market is currently going from strength to strength, having seen the largest product numbers and availability over the past 12 months. 721 new products were introduced to the UK buy to let market during 2017, marking a 32 per cent increase in overall product availability.
CEO of Mortgage Brain, Mark Lofthouse, commented: ‘It looks like the Prudential Regulation Authority changes, coupled with what could be seen as the start of a number of interest rate rises, is starting to affect the cost of mainstream buy to let mortgages. Buy to let product numbers are at a new high, however, and there are still pockets of cost reductions and savings to be had for potential landlords and property investors. With the buy to let market set to become even more complex in 2018, though, we might be on the start of a new path in terms of mortgage cost movement compared to the past few years.’