Buy-to-let mortgages culled in December
The number of buy-to-let mortgage products has dropped by the largest amount since 2009, according to Moneyfacts.
The financial information provider said that 74 mortgage deals for landlords have been withdrawn from the market in the last month alone.
The total number of buy-to-let deals fell from 1,482 to 1,408 between December and January, however this means there are still more mortgages available than the 1,256 on offer in January 2016.
Charlotte Nelson, finance expert at Moneyfacts, said: “The buy-to-let mortgage market took a hit last month, seeing the largest reduction in product numbers since March 2009. Withdrawals have not been limited to just a few providers, either, with the reductions having been spread across the board.”
Moneyfacts noted that the 75% loan-to-value sector, for landlords with a 25% deposit, has seen the largest reduction in product numbers, falling from 606 to 540 in just one month.
“With tougher affordability rules having come into play on 1st January and more changes due in September it is no wonder the BTL market has taken a hit,” added Nelson. “Alongside tougher affordability, major changes to the way in which income from property rentals is taxed will be coming in April.
“2017 is set to be an uncertain year, which could be a lethal cocktail for landlords, particularly now there are less products on the market. Anyone unsure about their options should seek out a financial adviser.”