While landlords with buy to let properties around the UK have been enjoying low rates for mortgages are now being warned that their borrowing costs look set to rise.
Data from Mortgage Brain reveals that the sector has had several years of strong reductions in the costs for buy to let mortgages.
For example, the firm reveals that a two-year fixed buy to let mortgage with an 80% LTV is 18% lower than it was in 2014 and 11% lower than last year.
They also point out that the lowest rate for a three-year fixed buy to let mortgage with an 80% LTV, which was 3.39%, is now 16% lower than three years ago and 10% lower than in 2016.
Most buy to let products will increase their costs
However, the analysis of the buy to let mortgage market by Mortgage Brain reveals that most buy to let products will increase their costs over the next three months.
The firm's chief executive, Mark Lofthouse, said: “Our analysis of the buy to let sector shows it could be levelling out and is moving away from historic lows in terms of rates and costs.
“Buy to let investors can take advantage of some good low rates and savings when compared to last year but the marginal and mixed movement in cost in the last three months could be the start of a period of rises.”
The firm's data reveals that a growing number of buy to let mortgages have seen their rates either rise or the LTV ratios increase since the beginning of November.
They add that the sector appears to be levelling out with a long period of stability for rates and costs now coming to an end which will make borrowing more expensive for landlords.
However, the latest data from Mortgages for Business reveals that most lenders are currently reducing their buy to let mortgage rates in a bid to attract buy to let landlords with some offering all-time low rates.
The best deals are for those landlords willing to lock into a long term offering though the fixed rates for five-year deals are now 'creeping up', says the report.
January was a record month for student lettings
Meanwhile, one online student letting agency says that January was a record month for student lettings.
They say they enjoyed strong growth in the number of properties being uploaded by landlords as well as for viewings and bookings.
Their data also reveals that the number of property searches taking place for student accommodation rocketed by 75% during the month.
The firm has also revealed that its website saw a big pickup in traffic from students in November and December as students around the UK began their search for student properties.
