Cost of buy-to-let 5-year fixes falls
The cost of five-year fixed rate buy-to-let mortgages has fallen as we enter 2020.
At 50% loan-to-value the cost fell by £15 per month between December 2019 and January 2020, while at 65% LTV it fell by £11.
The research came from online mortgage broker Property Master.
Angus Stewart, chief executive of Property Master, said: “We did detect the buy-to-let market, as with many other sectors, was holding its breath until the election was out of the way.
“Now with such a clear, decisive victory we would expect confidence to return and our latest research has shown that this is being seen in a fall in the cost of borrowing.
“Most of this downward pressure on mortgage rates is though from greater competition amongst lenders for good business.
“A lower Bank of England base rate – which may now be on the cards – would give lenders scope to cut more deeply.”
The cost of two-year fixed rate buy-to-let mortgages stayed fairly flat month-on-month.
Stewart looked ahead to the challenges facing landlords in 2020.
He added: “The traditional tax relief on mortgage interest will finally be phased out in April 2020 whilst those landlords that are renting out their own home will find from this year, they will be subject to full Capital Gains Tax when they come to sell.
“Meanwhile landlords will have to ensure their properties meet Minimum Energy Efficiency Standards to a new level this year and the ban on tenancy fees will be extended to all existing tenancies. Any reduction in borrowing costs will therefore be very welcome indeed.”