Record high number of mortgage deals for landlords
The number of buy-to-let mortgages on offer to landlords has passed the 2,000 mark for the first time ever, according to Moneyfacts.
The financial information provider found that there are now 2,022 deals for landlords, compared to 1,558 a year ago and just 1,340 two years ago.
The growth in product choice comes despite a turbulent few years for landlords, given significant changes to regulations and taxation that have occurred.
Charlotte Nelson, finance expert at moneyfacts.co.uk, said: “The buy-to-let (BTL) market has seen quite a rollercoaster ride over the past year, including multiple changes that have required both landlords and providers to rethink their options.
“However, this hasn’t appeared to deter providers, marking an increase of 464 deals in just one year, which has seen the BTL market break yet another record and rise past the 2,000 mark for the first time on our records.”
Nelson noted that The Prudential Regulation Authority (PRA) rules launched at the end of September 2017, which saw lenders having to apply stricter standards to those with four or more properties, could explain the boost to product numbers. Providers may well have opted to offer two different products to cater to the different borrower types.
She added: “Last week, moneyfacts.co.uk reported that the number of limited company fixed rate options were on the rise. These extra products, which cater for landlords looking to reassess their options after the tax changes, are yet another reason why the overall product numbers have been boosted.
“Amid this upheaval, the market has seen many landlords and aspiring landlords take a step back to assess their options and figure out whether they are making the right choice. As a result, buy-to-let providers are now competing for a smaller pool of customers. Offering variety in their range is one way in which they can compete.”