BTL landlords pay the cost of smaller deposits

There are currently 3,528 buy-to-let mortgages available on the market, the most recorded by Moneyfacts since September 2007 and almost 1,000 more since before the pandemic hit. But buy-to-let investors with small deposits, who are viewed by lenders as being riskier borrowers, must pay hundreds of pounds more in costs. Moneyfacts found that the average rate of both a two-year and a five-year fixed deal for landlords with a 15% deposit rose between December and January. Meanwhile, the average rate of a buy-to-let mortgage requiring a 25% deposit, and fixed for two years, stayed unchanged, and the average price of a five-year fix actually dropped.

The Daily Telegraph