Buy-to-let mortgages at record low rates and predicted to remain stable

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Interest rates and costs on buy-to-let mortgages are at record lows. There has been little movement in costs over a three-month period and it is forecast that rates will remain low throughout the summer of 2018.

Figures from Mortgage Brain show that 60% to 70% loan to value tracker mortgages have remained stable over the April to June 2018 period. A 70% loan to value five- and three-year fixed rate mortgages fell by 1% in the same period, but some mortgages have risen by 1%.

The highest increases have been in 70% loan to value mortgages for a two-year fixed period, which cost 3% more in July 2018 than March 2018. For the average mortgage, this equals an increase of only £198.

Fees and other costs have been reduced by the majority of buy-to-let lenders. The Bank of England has decided to keep interest rates unchanged and this has meant that most buy-to-let mortgages have not raised their interest rates. It is possible the Bank may raise rates after summer ends.

Commercial mortgages and individual mortgages have also remained steady.

Most financial experts expect that buy-to-let mortgage interest and costs will remain steady for at least the end of summer 2018. Landlords have a wide choice of mortgage products available to finance property purchases or to mortgage existing property. A mortgage broker has access to many lenders and can find the most suitable loan deals for their individual circumstances.

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