Mortgage Brain has reported that the costs of buy-to-let mortgages have fallen by as much as 8% over the past six months.

The firm’s latest product data analysis show that the cost of a five year fixed buy-to-let mortgage with a 70% LTV is now 8% lower than it was in March 2016.

With a current rate of 2.80% (as of 1 September 2016) the reduction in cost for this product equates to a potential annualised saving of £738 on a £150,000 mortgage.

The cost of the lowest rate three year fixed buy-to-let mortgage at 2.64%, and a two year fixed at 2.89% – both with a 70% LTV – have seen a 6% reduction in cost since March and offer landlords an annualised saving of £504 and £540 respectively.

Buy-to-let mortgages with a 60% LTV have also come down in cost over the past six months with a five year Fixed down 5%, a three year fix down 4%, and a two year fix down 2% in cost since March 2016.

However, Mortgage Brain’s latest data shows  that some two year tracker buy-to-let mortgages have increased in cost. The cost of the lowest rate 80% LTV product (at 2.97%), for example, is now 14% higher than it was in March 2016.

At 1.80% over two years the cost of a two year tracker with a 60% LTV is now 3% higher, while the same product with a 70% LTV is now 1% higher.

Mark Lofthouse, CEO of Mortgage Brain, said: “With further interest rate cuts predicted by the Bank of England it will be interesting to see what happens to mortgage rates and costs over the next few months.

“There’s no doubt though that on the whole borrowers and potential buy-to-let investors are in a great position to take advantage of the low rates and cost reductions that we’re seeing.”