Buy-to-let mortgage fees hit their lowest point for 12 months

The UK private rented sector has been in need of a boost to stock levels for some time now, with tenant demand across the country still outstripping supply of rented properties. However, it has been revealed that mortgages in the sector are becoming cheaper to obtain, which could lead to a swell in landlords buying.

According to recent findings, those landlords who choose flat fees over percentage based fees when it comes to their mortgage costs are now finding fees at their lowest point in a year. It said in the second quarter of the year, there has been a fall in fees of this type of five per cent.

It means that a landlord who would have paid £1,446 in flat fees last year would now be able to get themselves a buy-to-let mortgage with fees of £1,370. This £76 saving may not seem like a lot, but for any landlord looking to bulk out their portfolio, any saving can make a difference.

With interest rates still at exceptional lows, it’s all the more important to make sure you look at any additional charges when taking a buy to let mortgage. It is therefore promising to see a reduction in the average flat fee charged for mortgage products,” he added.

However, as flat fees become ever more expensive, it was discovered that the number of landlords actually getting mortgages with this type of charge is dropping. Percentage based fees are becoming more and more prevalent in the market, now accounting for 48 per cent of all buy-to-let mortgages.

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