Buy to Let

BTL mortgage flat fees drop

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Flat fees for buy-to-let mortgages are at their lowest point for more than 12 months, according a recent survey.

The latest edition of the Buy to Let Mortgage Costs Index by Mortgages for Business has revealed that the average flat fee fell by more than 5% in Q2 to £1,370 (Q1: £1,446).

As a result of this decrease, landlords may save an average of £76 in fees on every mortgage they take.

Steve Olejnik, COO of Mortgages for Business, said: “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.”

Percentage-based fees now apply to 48% of buy-to-let mortgage products, having overtaken flat fees at the start of the year and increasing in number every quarter since Q2 2016.

Just 11% of buy-to-let mortgage products carried no arrangement fees in Q2, down from 15% in Q1.


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