Buy-to-let mortgages are less expensive than they were, with mortgage rates and lenders’ fees both down.
Recent research shows that during the first quarter of 2013 buy-to-let rates fell by an average of 0.33% when factoring in fees. The gap between three and five-year rates narrowed over the quarter and many five-year rates are now similarly priced to their three-year counterparts.
As there are more ‘specialist’ products available in the three-year sector, the average cost of three-year products can be higher than the
average for the five-year products.
In Q1, lender arrangement fees, valuation fees and legal costs added an average of 0.52% on to the headline cost of a buy-to-let mortgage. This has dropped slightly since the beginning of the year when the figure stood at 0.57%.
Costs were at a peak in 2010 when across all product types they added an average 0.66% pa to the average cost.
Of the buy-to-let mortgage products available in Q1, only 9% had no lender arrangement fee. A further 43% of products had percentage-based lender arrangement fees of between 1-3%, and nearly half (48%) of all buy-to-let products had a flat lender arrangement fee.
The average flat fee is now £1,534. The research also shows that in the first quarter of this year, there were 434 buy-to-let mortgages available from 27 lenders.
If you are an existing landlord or potentially a first time landlord get in touch with Belvoir Kettering today to take advantage of our vast expertise and experience to ensure you are getting the best advice. Contact us today on 01536 415415 or email us at kettering@belvoirlettings.com
