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Record low level of first-time landlord deals

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The buy-to-let mortgage market may be expanding but first-timers don't have access to all the deals
Record low level of first-time landlord deals

There has been a noticeable fall in the proportion of buy-to-let mortgages available to first-time landlords over the last five years, according to Moneyfacts.

The financial information provider said that this was despite the fact that the number of buy-to-let mortgages has actually increased.

Five years ago there were 434 buy-to-let products on the market that were available to first-time landlords, accounting for 83% of all available buy-to-let loans. Others are specifically targeted at experienced landlords, for example, or those with an existing investment property portfolio.

Today the number of buy-to-let mortgages on offer to first-timers has increased to 813. Good news for aspiring landlords. But Moneyfacts said that this now only accounts for 75% of all available deals. So first-time landlords now have access to a record low proportion of the buy-to-let mortgage market.

Charlotte Nelson, finance expert at, said: “The number of buy-to-let mortgages has increased; however, first-time landlords have been missing out on this boost in product numbers. Indeed, the percentage of the market that is available to new landlords has now dropped to just 75%, down by around 10% in two years.

“As first-time landlords don’t have a proven track record in managing rental properties, offering them a buy-to-let mortgage poses a greater risk to the lender, and it’s this risk that is making the number of first-time landlord deals remain relatively static.

“The additional regulation in the buy-to-let market and the added economic uncertainty following the Brexit vote means even more lenders may reconsider whether first-time landlords are a ‘safe bet’. As a result, would-be landlords are likely to face more probing questions about their finances than their more experienced counterparts.”

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