Huge increase in buy-to-let mortgage choice

Buy-to-let product availability has increased 58% since December 2008, according to the latest figures from Mortgages for Business.

Although this rise comes from an all time low point, the number of mortgage products available to landlords has been gradually rising, giving landlords who want to take advantage of low house prices better financing options to expand their portfolios.

By using detailed product availability information from its mortgage sourcing tool, Mortgage Flow, Mortgages for Business noted that while the number of mortgages available is still low, at 20% of 2007, product availability has risen 58% since the end of 2008.

However, Mortgages for Business stressed that product availability is certainly nowhere near the levels pre-credit crunch and advised that using a broker with access to the entire market has never been more crucial.

Mike Freeman, technical support manager, said: “While there is no doubt that buy-to-let mortgage product availability is at about a fifth of the level of 2007, the good news is that product availability has improved since the low of December 2008. With the market starting to bottom out and landlords beginning to buy up properties at low prices, lenders are beginning to feel more secure.

“In addition we’ve actively been talking to lenders who we have long-term relationships with and there is a feeling that we may see a positive shift in lending criteria with a particular focus on loan to value ratios. This is very positive and shows growing confidence in the buy-to-let market.”