The costs for buy-to-let mortgages are down by as much eight per cent, according to figures by software and technology developers, Mortgage Brain.
The latest product data analysis shows that the cost of a five-year fixed buy-to-let loan with a 70 per cent loan-to-value (LTV) is now eight per cent less than it was in March 2016.
Assuming current rates of 2.8 per cent, this figure represents potential annualised savings of £738 on a £150,000 mortgage.
The cost of the lowest rate 70 per cent LTV three-year and two-year fixed buy-to-let mortgage have also seen a six per cent reduction in cost since March, Mortgage Brain report, representing annual savings of £504 and £540 respectively on a £150,000 mortgage.
Similarly, buy-to-let mortgages with a 60 per cent LTV have come down in cost over the past six months, with a five-year fixed mortgage down five per cent, a three-year down four per cent, and a two-year down two per cent since March 2016.
With uncertainty surrounding the Bank of England’s next move, Mark Lofthouse, CEO of Mortgage Brain, said: “It will be interesting to see what happens to mortgage rates and costs over the next few months.
“There’s no doubt though that on the whole borrowers and potential BTL investors are in a great position to take advantage of the low rates and cost reductions that we’re seeing.”