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Buy-to-let rates to fall

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The cost of fixed rate Brexit buy-to-let mortgages are set to fall now the Conservatives have been elected, according to online mortgage broker Property Master.

The monthly cost of fixed rate buy-to-let mortgages have fallen across all categories compared to the same time last December – in some instances by as much as £38 per month for the average mortgage.

But before last week’s Conservative victory this downward trend was stalling.

Angus Stewart, chief executive of Property Master, said: “Now that the uncertainty created by last week’s General Election has ended and as we appear to be moving more swiftly toward Brexit at the end of January, we believe there is every chance rates will fall still further.

“Firstly, the Conservative victory, even before it happened, strengthened the pound so removing one factor that could have encouraged the Bank of England to increase rates.

“Secondly, two members of the Bank’s Monetary Policy Committee voted for lower rates last time around which makes us think downward is more likely to be the next movement in the base rate. The stars are aligned for lower mortgage rates for hard-pressed landlords in the New Year.”