Boost in buy-to-let mortgage numbers as interest rates fall
Landlord mortgages have grown in number over the last two months, with 283 more buy-to-let products added to the market, according to Moneyfacts.
The financial information provider said that landlords will be pleased to see that the choice of products has improved recently (1,738), after dropping to only 1,455 total products offered in May.
There are now 134 more two-year fixed products available at the start of May 2020, and 164 more five-year fixed rate products are on offer, while there’s been a fall in some mortgages for landlords with a large 40% deposit.
The overall market is still far below the levels seen in March (2,897), before the coronavirus crisis took hold in the UK.
Average rates remain competitive when compared to January.
The average two-year fixed rate mortgage on 1st July was 0.21% less than at the start of this year, while the five-year fixed rate fell 0.22% over the same period.
Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “The mortgage market as a whole remains an evolving and complicated landscape, as the ongoing impact of the recent lockdown has affected product choice and rates. However, as our latest research shows, the buy-to-let sector has adapted well and there are indications that landlords may have cause for positivity.
“The increase in overall product choice and the fact that average rates remain competitive when compared to where we began this year may be early indications that this sector is starting to recover.
“Due to continuing economic uncertainty and few low-deposit residential mortgage deals available, there may be increased demand for private rental properties, which those landlords in a position to capitalise on may wish to consider.
“Those interested in refinancing their existing products or taking on further properties for their portfolio may be wise to seek advice from an independent, qualified adviser, who should be up-to-date on the latest available products and criteria.”