Product choice in the buy-to-let sector is rising, according to Moneyfacts.co.uk, after lenders pulled hundreds of mortgages following the disastrous mini-Budget in September.

The financial information provider said that overall buy-to-let product availability has risen by over 700 options to 1,769 since the start of October 2022 (when there were just 988).

But it pointed out that there are still around 300 fewer deals than at the start of September 2022 (when there were 2,075).

Rachel Springall, finance expert at Moneyfacts.co.uk, said: “The buy-to-let sector has faced notable market turmoil, so it’s positive to see product choice gradually returning since the start of last month.

“A rise in choice could indicate an encouraging sentiment across lenders that appear to be adjusting their ranges to cater to landlords searching for a new deal.”

Rates rising

Average fixed rates rose over the same period, both over a two-year and five-year fixed rate product.

Two-year fixed rates are now 6.5% on average, while five-year fixes are 6.27%.

Springall added: “The cost of locking into a new fixed deal has risen since the start of October, and the overall average buy-to-let fixed rates across both two- and five-year terms sit above 6%. So, despite product choice starting to return, landlords will be paying higher interest rates than if they secured a deal just eight weeks ago.

“There are high expectations that interest rates will come down in the weeks ahead, so it would not be too surprising if landlords wait a little longer before they refinance, particularly as we approach the end of the year.”