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Record level of mortgages on offer to first-time landlords

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In five years the number of products on offer to new landlords has more than doubled
Record level of mortgages on offer to first-time landlords

The choice of first-time landlord buy-to-let products has risen to a record high, according to Moneyfacts.

The financial information provider found that the number of deals available to first-time landlords has risen substantially over the past five years, up from 645 deals in 2014 to 1,405 today. In the past year alone, product numbers have increased by 137.

Rachel Springall, finance expert at, said: “Entering the buy-to-let market hasn’t been without its hurdles, and almost two years since the regulator introduced rules expected to tighten lending, the move doesn’t seem to have shaken up lenders attitudes to attract first-time landlords.

“In fact, the number of deals available to these individuals has now boomed to a record high.”

Property is still an attractive proposition for prospective investors, as shown in a recent study by London letting and estate agent Benham and Reeves.

The study of 5,000 buy-to-let investors showed that 73% considered property to be the best, least volatile long-term investment. The same study highlighted that 83% were unlikely to sell their property over the next year despite economic uncertainties.

Lower rates

At the same time, the interest rates paid by first-time landlords have fallen, with average two-year fixed rates down from 4.01% in 2014 to 2.97% today. Five-year fixed deals have also fallen from 4.68% five years ago to 3.52% today.

Springall added: “Fixed rates for first-time landlords start below 1.50% on a two-year fixed deal, but the associated upfront product fees must be considered carefully.

“First-time landlords concerned about potential rate rises may instead consider a five-year fixed deal, and thankfully rates have fallen in this sector since 2014. In fact, the average five-year fixed rate for first-time landlords has fallen by 1.16% since July 2014, down from 4.68% to 3.52% today.”

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