The buy-to-let sector has seen product choice rise to levels not seen since August 2022, said Moneyfacts.

The financial information provider found that the overall number of buy-to-let products has now reached 2,400, its highest level since July 2022 (2,746).

The number of buy-to-let mortgages plummeted following the disastrous mini-Budget, when lenders pulled their deals from the shelves. But they quickly bounced back by the end of November and have been rising since.

Rachel Springall, finance expert at Moneyfacts.co.uk, said: “It is encouraging to see buy-to-let product choice gradually recover from the shock surrounding the fiscal announcement. The choice of deals to landlords plummeted and both the average two and five-year fixed rates rose to 6% towards the tail end of 2022, but thankfully, both rates have slowly dipped below this level.

“There are now 2,400 deals for landlords to choose from, up from just 988 in October 2022, thanks to consecutive months of growth.”

What’s happening to rates?

Average fixed rates have fallen slightly month-on-month, both over a two-year or five-year fixed term.

Two-year fixed rates are now 5.81%, slightly lower than the 5.95% recorded in February.

However, they remain significantly higher than two years ago, when they were 3.05%, and five years ago when they were even lower at 2.96%

That means landlords coming off a five- or two-year fixed deal will therefore find the latest rates are more than two percentage points higher than they have been used to paying.

Springall added: “Landlords may be waiting for fixed mortgage rates to come down further or indeed opt for a tracker mortgage to give them more flexibility to eventually switch their deal. However, interest rates are only part of the decision-making process when entering a buy-to-let investment.

“Whether that be for new or existing landlords, it is always wise to seek advice to ensure it is the right time to commit to a deal.”