Overall buy-to-let (BTL) product availability rose month-on-month in April, by 39 deals.
According to Moneyfacts, this growth in landlord mortgages “shows signs of stability in the market”.
It follows a drop in the number of deals by 276 products between the start of 2024 and the beginning of February, which was the biggest monthly drop since June 2023.
Despite overall choice being up, deeper analysis shows a month-on-month rise of 47 five-year fixed deals, but a fall of 19 in the choice of two-year fixed deals.
Rates remain stable
Average fixed rates over two- and five-year fixed terms both rose marginally month-on-month by 0.01% and have remained below 6% since the start of 2024.
Two-year fixed rates on BTL mortgages are now 5.52%, and five-year fixes are also 5.52%.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “The stabilisation of buy-to-let product availability is a positive turn of events for landlords after recent months of contracting choice. Lenders will no doubt need to remain fluid with their product ranges and ensure they can react quickly to market uncertainty, such as volatility surrounding swap rates.
“Landlords with a limited deposit or equity will find a growing pool of products at 80% loan-to-value, with deals over two- and five-year fixed rising month-on-month, and up year-on-year.
“This improvement in choice should be welcomed, but the real challenge surrounds affordability where both the average two- and five-year fixed rates at 80% loan-to-value remain above 6%.”
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