Rates for buy-to-let fixed rate products have continued to fall, according to the latest Property Master mortgage tracker.

Research produced by the online mortgage broker for March 2020 showed the biggest month on month fall in cost was for two-year fixed rate buy-to-let mortgages at 50 per cent of the value of a property. The average cost of a £150,000 mortgage for 50 per cent LTV fixed for two years fell by £12 per month between February and March.

A two year fix at 65 per cent LTV fell by £3 per month; the cost stayed the same month on month for 75 per cent of the value of a property.

Property Master chief executive Angus Stewart said the news would be ‘a lifeline’ for hard-pressed landlords impacted by regulatory and tax changes.

Stewart says: “Todays good news on the cost of borrowing will be a boost for landlords just as yet another raft of regulatory and tax changes is set to bite.  From later this month (March 20) the Homes (Fit for Human Habitation) Act will mean all tenants are able to take landlords to court if they feel their home is, for example, mouldy, damp or too cold.

“Courts will have the power to force works to be carried out and may award compensation.  Shortly after that in April landlords will need to demonstrate that all their properties have at least an ‘E’ energy efficiency rating or face substantial fines.”

Stewart says despite the challenges some confidence is beginning to return to the market, adding that lenders “continue to play an important role in supporting landlords by offering good deals and broadening their product offerings.”

The Property Master tracker found that five-year fixes had fallen at a lesser rate than two-year fixes, dropping by £6 per month on a typical £150,000 property at 50 per cent LTV and by just £2 on a 65 per cent LTV.

Five-year fixed rate offers for 75 per cent of the value was the only category to see an increase in cost, up by £1 a month from £371 per month to £372.