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Latest research out from online mortgage broker, Property Master, the digital start up that uses algorithms to match the requirements of individual private landlords against the entire buy-to-let mortgage market, reveals that the cost of many popular five-year fixed rate buy-to-let mortgages has fallen back again after a sharp month on month spike February to March. 

Many of these mortgages are now cheaper than they were a year ago in April 2018. Product fees for five-year fixed rate mortgages have though leapt year-on-year – sometimes by as much as £335.

Property Master’s April 2019 Mortgage Tracker shows the cost of five-year fixed rate offers for 50% of the value of a property fell by £8 a month between March and April. 

fastr – MPU

Year on year this type of mortgage was down in cost by £28 a month. The cost of a five-year fixed rate for 65% of the value of a property fell by £4 a month but by £18 per month when compared to the cost a year ago in April 2018.  

Five-year fixed rates for 75% of the value of a property remained the same at £408 March to April but year on year fell by £18 a month.

Almost all the categories of fixed-rate buy-to-let mortgages being tracked showed a sharp year-on-year increase though in average product fees.  Fees for a two-year fixed rate for 50% of the value of a property leapt from £714 in April 2018 to £1,599 today – an increase of £885.

The other largest increase in average product fee was for five-year fixed rates for 50% of the value of a property which increased from £1,164 in April 2018 to £1,499 today – an increase of £335.

The Property Master Mortgage Tracker follows a range of buy-to-let mortgages for an interest only loan of £150,000.  Deals from 18 of some of the biggest lenders in the buy-to-let market including Barclays, BM Solutions, RBS, The Mortgage Works, Godiva and Precise were tracked. Figures for this month’s Mortgage Tracker were calculated on deals available on April 1, 2019.

Angus Stewart, Property Master’s Chief Executive, said: “It is good news that the type of deals many landlords favour have fallen back a little in cost after last month’s increase. 

Better still the headline rate for many of these offers are actually less than they were a year ago.  However, there is something of a catch in the increase in many product fees. 

Applying for a buy-to-let mortgage can be a complex process and it is important landlords compare the total cost of the mortgage they are offered.”

Property Master was launched almost two years ago and aims to shake up the buy-to-let mortgage market currently served by around 12,000 mortgage brokers. It has already attracted financial backing from a broad range of private investors including a minority stake being taken by LSL Property Services, whose estate and letting agency brands include Your Move and Reeds Rains.

Property Master has automated what was a manual, complex process to provide landlords with a free easy to use mortgage search tool which provides a mortgage quote that is pre-screened against each lender’s specific and changing criteria.

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