Potential landlords looking to invest in the York property market received good news this week when a mortgage tracker reported an “unprecedented” fall in some buy-to-let mortgage rates.
It followed government figures saying that the average value of houses in York increased by 5.8% in the last 12 months, making property in the city a wise buy for landlords looking for a long-term investment.
The average house price in York is now £257,913, according to the government’s latest UK House Price index. The price compares with an average annual rise of 1.1% in England, where the average property costs £245,128.
Online investment platform Property Master’s July 2019 Mortgage Tracker shows the biggest fall in monthly cost was for five-year fixed rate buy-to-let mortgage offers for 75% of the value of a property. The monthly cost of this type of mortgage fell by £36 per month June to July. Five-year fixed rates for 65% of the value of a property fell month on month by £6, and two-year fixed rate buy-to-let mortgages for 75% of the value of a property fell by £8 per month.
The news follows recent remarks by the Governor of the Bank of England that the UK leaving the European Union without reaching some sort of trade agreement may well require some sort of economic stimulus such as a cut in rates to weather the shock of no deal.
“We’ve never seen a fall across the board in this way”
Angus Stewart, Property Master’s Chief Executive, said: “We have been tracking buy-to-let mortgage interest rates in this way for 18 months and we have never seen before a fall across the board in this way. It is quite unprecedented.”
He added: “It is likely that lower rates are also being fuelled by the continuing increase in the number of buy-to-let mortgage products. Whilst it is true some lenders have exited the market others are boosting their range and competing hard for new business.”
The Property Master Mortgage Tracker follows a range of buy-to-let mortgages for an interest only loan of £150,000. Deals from 18 of some of the biggest lenders in the buy-to-let market including Barclays, BM Solutions, RBS, The Mortgage Works, Godiva and Precise were tracked. Figures for this month’s Mortgage Tracker were calculated on deals available on July 1, 2019.
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