New research by specialist broker Mortgages for Business has revealed that a variety of fees can add up to 2% to the effective annual cost of individual buy to let mortgages and the impact of these fees has varied over time.
Fees include lender fees, valuation fees and legal fees.
Costs were at a peak in 2010 when they added 0.66% to the average cost but this has since fallen to around 0.57%. Unsurprisingly, fees have a greater impact on short term (i.e. two year) mortgages. In 2010 they added an average of over 1.13% to annual costs whereas this is now around 0.85%.
The results were revealed in 12 indices which track the average buy to let mortgage costs of two, three and five year fixed rate and discounted/tracker mortgage products at 65% and 75% loan to value.
The data was extracted from details of more than 16,000 buy to let mortgage products from 2008 onwards, held in Mortgage Flow, the broker’s bespoke sourcing tool.
For more info on Buy to Let mortgages contact Integrity IFA now on 01316530588 for independent whole of market mortgage advice.
