But-to-let mortgage warning

Property investors looking to get a buy-to-let mortgage have been issued with a warning that they may find it more expensive than they think, according to one price comparison website.

The website emoneyfacts has found that landlords are being increasingly hit with high fees because mortgage lenders are compensating for low headline rates with higher fees.

Alan Harper, a senior analyst at emoneyfacts, said: "The idea of lenders offering the choice between products that offer comparatively high interest rates with low fees, and low interest rates with high fees, has been around for a year or two now."

He added that individual circumstances will determine which is the better option in any specific case, but that it is always wroth remembering the effect a large fee can have over the term of the deal on the overall cost of the mortgage.

Meanwhile the price of fixed rate mortgages has risen since the surprise interest rate rise to 5.25 per cent. Now fixed rate mortgages at under five per cent are a rarity.


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