Mortgage Brain’s latest quarterly product data analysis has revealed that while the buy-to-Let market remains largely stable, mortgage costs have started to fall.

The cost of a 60% LTV two year tracker buy-to-let mortgage, for example, is now 3% lower than it was three months ago. The same product with a 70% LTV now costs 2% less than it did in March, while the 80% LTV is now 0.5% lower.

The reductions in cost, while marginal, do offer buy-to-let investors a potential annualised saving of £234, £144 and £36 respectively on a £150k mortgage.

Borrowers looking for a longer term deal can also benefit from the small fall in costs over the past quarter with Mortgage Brain’s latest data (as of 1st July 2019) showing a 2% reduction in cost for a 60% and 80% LTV five year fixed buy-to-let mortgage.

A fall in cost of up to 1% has also been recorded for a 60% and 70% LTV three year fixed buy-to-let mortgage.

Mortgage Brain’s analysis also shows the true cost differences between buy-to-let mortgages compared to mainstream residential products. The latest figures show that the cost of the 80% LTV five year fixed product is 19% higher than the same product type for a residential mortgage.

A 60% LTV two year tracker buy-to-let product, by comparison, costs 8% more than its residential equivalent, while a 60% LTV three year fixed costs 6% more.

Mark Lofthouse, CEO of Mortgage Brain, said: “With new regulations, tax changes, and the potential for base rate rises coming into play, the buy-to-let landscape remains as complex as ever.

“While the mortgage cost movement over the past three months has been minimal, however, the majority of the movement has been favourable and with specialist advice and support from brokers, buy-to-let investors and potential landlords can continue to make the most of the low rates and costs in the buy-to-let market.”