Buy-to-let mortgage flat fees reach new lows!

The flat fees for buy to let mortgages are now lower than they have ever been over the last 12 months. The average flat fee among buy to let mortgage products fell by more than 5% in Q2, down to £1,370 from £1,446 in Q1. This will be positive news for landlords favouring the new fee structure, saving them an average of £76 in fees on every mortgage they take.

However, the percentage based fees are becoming more common with lenders, likely as a way to keep interest rates low while still allowing for profits to scale with much larger loans. The percentage based fees now apply to 48% buy to let mortgage products, having undertaken flat fees on product availability at the start of 2017.

With Interest rates still at an exceptional low, it is very important to make sure individuals look at any additional charges when taking out a buy to let mortgage. It is therefore promising to see a reduction in the average flat fee charged. With the percentage fees becoming increasingly common and no change in the prevalence of fees, it is understandable that we have seen a reduction in the availability of fee free options. It was recorded that only 11% of buy to let mortgage products carried no arrangement fees in Q2, down from 15% in Q1.

If you would like anymore information with regards to buy to let mortgages then please feel free to contact the team at Key Commercial Finance Solutions Ltd today and we will be more than happy to assist you further.