Jonathan Moore, head of marketing at Mortgages for Business, said that, aside from a few exclusives available for a limited period, all mortgages on Mortgage for Business’s sourcing system are now priced above 6%.

This follows Cheltenham & Gloucester’s withdrawal last week of its 5.89% five-year fixed-rate mortgage, which was replaced with a 6.29% five-year fixed rate.

He said: “This is the first time we have seen this situation this year and certainly for several years. Lenders with mortgage products below 6% have been flooded with applications and have been forced to withdraw products that have only been available for a matter of days,”.

Moore highlighted that although the differences in repayments between a mortgage at the high end of 5% and the low end of 6% are small, there is a negative perception around this price point among buy-to-let investors.

However, Moore added that the buy-to-let market is benefiting from an increase in demand. He said: “The liquidity and mortgage pricing is having some favourable benefit for many landlords across the country. Firstly the smaller pool of first-time buyers has increased rents by an average of around 4%, according to ARLA [Association of Residential Letting Agents].

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“Secondly, housebuilding is at its lowest level for a decade, heightening potential supply and demand issues in the areas such as the South East. Finally, more people may look to short-term renting after selling their principle property as they wait to see if prices will fall further.”