Buy-to-let mortgage lenders have a ‘glut of money’ to give landlords, according to financial experts.
They say lenders are sourcing funds at historically low interest rates and are passing this onto borrowers.
This comes as the Bank of England decided to keep interest rates at the same level – despite concerns about Brexit and the economy.
Angus Stewart, chief executive of mortgage broker Property Master, explained: “Once again we have seen the cost of buy-to-let mortgages fall. At the moment, lenders in this marketplace have a glut of money to lend.
“The current downward pressure on rates in the money markets means they are able to source funds cheaply at historically low interest rates.”
His comments come ahead of the next Brexit deadline on 31 October, after which interest rates may change. In simple terms, a cut in interest rates may help to boost the economy, while a hike may be a sign that the economy is stronger than expected.
Mr Stewart explained: “More generally no-one really wants to predict the outcome of Brexit but it may be that certainty, one way or another, is just around the corner.
“Once the market is more certain about what is happening this volatility and the bargains it has thrown up will probably come to an end. Landlords may not have long to benefit.
“Even if a landlord’s fixed rate is not yet due to expire it would be worth looking at what is currently available. In some situations, it might be worth paying to exit an existing fixed rate deal early.
“With some lenders willing to hold a new product deal for up to six months there is an opportunity to apply now and see what happens with rates. It will pay most landlords to at least review their position while rates are low.”
His comments come as Property Master unveiled its latest mortgage tracker, which showed that the biggest fall in monthly costs for landlords was for two-year fixed rate mortgages.
They dropped by £24 a month between August and September, but this only applied to those with a 50 per cent deposit.
Two-year fixed rates on buy-to-let mortgages for those with a 35 per cent deposit fell month-on-month by £8, while two-year fixed rates for those with a 25 per cent offer fell by £11 a month.
Longer-term fixed rates that extend over five years fell across all categories. These included deals for landlords with a 25 per cent deposit, which fell by £3 a month between August and September, and by £14 for the same period for landlords with a 50 per cent deposit.
The Property Master mortgage tracker follows a range of buy-to-let mortgages for an interest-only loan of £150,000.
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