20 Jul

Buy-to-let flat fees fall

Buy-to-let flat fees fall

There has been a drop in the average flat fee for buy-to-let mortgages, according to a new lending costs index.

Figures from Mortgages for Businesses shows the average flat fee fell by five per cent during the second quarter of the year - a decline from £1,446 to £1,370 - the lowest level in 12 months.

It is expected that landlords opting for such products will save an average of £76 on each mortgage they apply for.

However, there has been an increase in the number of percentage rate fees buy-to-let mortgages on offer, with 48 per cent of available products based on such a fee structure.

“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,” said Steve Olejnik, chief operating officer of Mortgages for Business.

He added the industry has seen a reduction in the number of fee free options available to property investors. During the second quarter of 2017, just 11 per cent of products had no arrangement fees, compared to 15 per cent during the first three months of the year.ADNFCR-1222-ID-801838026-ADNFCR

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