SVR mortgages more costly for landlords than at start of 2018

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Landlords on standard variable buy-to-let rates are paying typically £27 more per month for their mortgages than at the start of the year, according to research from online mortgage broker, Property Master.

The digital start up that uses algorithms to match the requirements of individual private landlords against the buy-to-let mortgage market. Switching to a fixed rate mortgage could save them between £218 and £352 per month.

According to Property Master’s Mortgage Tracker research the monthly cost of an average buy-to-let Standard Variable Mortgage rate for a typical sum of £150,000 rose from £620 in September to £629 in October. This follows the increase in the bank base rate in August when rates rose above 0.5% for the first time in a decade. The year on year rise is £27 – from £602 in January to £629 now.

Angus Stewart, Property Master’s chief executive, said: “Obviously the increase in bank base rates has affected Standard Variable Rates the most but it does appear the situation is more mixed amongst fixed rate loans. Whilst some have crept up others such as the more popular fixed rate five-year loans have fallen back slightly since last month.

“Landlords look to be benefiting from a surge in competition amongst lenders particularly as those lenders fear that a raft of recent government measures will reduce the size of the private rented sector.

“Remortgaging figures look very healthy but the number of new mortgages taken out by landlords is falling. The good news is there are over 1,000 fixed rate mortgages alone on offer currently for landlords so shopping around is essential.”

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