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News: Mortgage Bonanza for buy to let investors as product choice booms

Tue, 28 Sep 21

The flurry of increased interest in buy to let means the choice of mortgage products for investors is now greater than at any time since 2007 according to independent finance service Moneyfacts.

September started with 2,968 products on offer in the BTL sector, the highest number seen by Moneyfacts - a respected market monitor - since October 2007. This is 71 products more than there were on offer pre-pandemic in March 2020.

The average overall two- and five-year fixed BTL rates have reduced this month by 0.03 and 0.04 per cent respectively. At 2.94 per cent the two-year fixed average is the lowest it has been since January and at 3.25 per cent the five-year fixed equivalent is the lowest since December 2020.

At the top end of the BTL loan-to-value sector there is a slightly different story for investors with smaller deposits or amounts of equity. 

At 85 per cent LTV, availability remained unchanged at just 19 products this month, 13 fewer than were available in September 2019. 

The average two- and five-year fixed rates in this bracket of 5.61 and 5.83 per cent are respectively 0.88 and 0.44 per cent higher than what was on offer two years ago.

Eleanor Williams of Moneyfacts says: “As we pass the 25th anniversary of the first BTL mortgages as we know them, our data gives landlords cause for positivity, as the number of products for them to choose from has risen by 153 this month, and at 2,968 is 1,162 higher than this time last year. 

“As rental demand remains high, BTL could be a worthwhile investment and the rise in overall product choice and fall in average rates is positive. 

However, a note of caution as lenders’ enthusiasm to improve ranges seems to dissipate at the top end of the BTL LTV spectrum.

 

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