Buy-to-let mortgage rates have seen some big falls in recent weeks, which is great news for landlords. Even if you already have a mortgage deal in place, the potential savings you could make could mean that now is a good time to start looking for a new deal.
So is now the time to find a new mortgage deal? Let’s take a look at what’s going on.
Drop in Mortgage Costs
Property Master has been keeping a careful eye on mortgage rates for landlords, and it has used its Mortgage Tracker to record a drop in the cost of mortgages across the board, as it recently reported. There has recently been a fall in interest rates in all the categories.
Where Are the Biggest Falls?
The largest interest rate falls were discovered in the two-year fixed-rate mortgages for 50% of the property value. The monthly cost for these mortgages went down by £24.
In the same two-year fixed-rate mortgages, the fall in mortgages for 65% of the value was £8 a month, and the fall in mortgages for 75% of the value was £3 a month.
Other falls were noted in five-year fixed-rate mortgages for 50% of the value of the property, which have seen falls of £14 a month. The five-year fixed-rate mortgages for 65% of the property value fell by £11 a month, and mortgages for 75% of the value fell by £6 a month.
Switching Could Lead to Big Savings
Lenders have a lot of money right now to lend, and that means there could be some excellent savings for landlords who are prepared to look for them.
For example, Property Master noted that if a landlord is on a Standard Variable Rate mortgage of 5.02% and they switch to a five-year fixed-rate, they could save £236 a month based on 75% Loan to Value.
Landlords on fixed rates could also switch to new mortgages and make significant savings over the coming months.
Why Is This Happening?
Interest rates are facing downward pressure across the world as well as in the UK. If it wasn’t for the uncertainty surrounding Brexit, the Bank of England might well have put up interest rates due to positivity surrounding the low unemployment rate and a growing economy.
Brexit Could Change Everything
The situation surrounding Brexit will soon become clearer (at least, that’s what is expected). And when there is more clarity on what is happening, and the financial markets are more certain, the bargains are likely to end. So it’s a case of looking at the mortgages available now and finding out whether you could save money.
Consider Looking at Different Mortgages
With the potential for considerable savings, now could be a very good time to at least look at the different BTL mortgage deals and decide whether it could be worth your while switching. There may not be long left to take advantage of the low rates, so it is worth taking some time now to find out how much you could save before the situation potentially changes over the coming weeks.