The number of buy-to-let mortgage products available in the UK fell by more than a quarter in April, according to the latest Buy-to-let Product Index.
Data from Mortgages for Business reveals that an average of 609 buy-to-let mortgage products were available in April, down from a high of 863 in March.
These were available from 31 different lenders and there are a number of possible reasons why the average product number fell by 254.
One is due to the possibility of a time lapse between lenders withdrawing products from the market and introducing new ones.
The index also suggests that high levels of pricing competition led to the removal of some products to ensure that workflows could be managed amid high demand.
Of all buy-to-let mortgage products, 46% were available to 75% loan-to-value, up from 38% in March and 40% in February.
While higher loan-to-value deals were available, these had much stricter conditions relating to them and cost more.
Some 9% of products were available to 80% loan-to-value while 1% were available to 85% loan-to-value.
In terms of pricing, both fixed and tracker rates were similar although fixed rate deals were deemed to be more competitively priced.
Mortgages for Business suggest fixed rate two, three or five-year deals represent better value than trackers, especially at lower loan-to-value ratios.
Fixed rates improved for these offerings on a monthly basis between March and April, from 3.53% to 4.02% (two-year), 4.46% to 4.82% (three-year), and 4.38% to 4.83% (five-year).
Increases were also noted among tracker buy-to-let mortgages with five-year terms up from 4.11% in March to 4.85 in April.
Three and two-year tracker deals also increased from 3.93% to 5.08% and from 3.39% to 3.81% respectively with all figures calculated as averages without fees.
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