A mortgage broker firm’s latest research has found that the cost of buy-to-let mortgages is continuing to fall.

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The most significant month on month fall in cost was for the two-year fixed rate buy-to-let mortgage at 50% LTV (loan-to-value) on a £150,000 mortgage has fallen by £12 per month between February and March.

There has been a £3 per month fall for a two-year fixed rate at 65% LTV; however there was no change in the monthly cost for a 75% LTV.

Angus Stewart, the mortgage broker’s chief executive, said: “The 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 20th] 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.”

In spite of the numerous challenges being faced by landlords there is still a very positive outlook displayed by BTL investors, as according to UK Finance there has been a rise in new buy-to-let mortgages and remortgages.

Stewart added: “Lenders continue to play an important role in supporting landlords by offering good deals and broadening their product offerings.”

According to its mortgage tracker, the mortgage broker says that five year fixes have fallen but at a slower rate than two-year fixes.

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