The number of buy-to-let mortgages on the market has hit 1,000 and a seven-year high.
Moneyfacts reports that product numbers have soared, with the number of landlord mortgages on offer hitting 1,000 for the first time since April 2008. It attributes the boom in deals to new demand from thousands of pensioners making the most of the new pension freedoms.
Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “With high rents and poor savings rates, it’s little wonder that the BTL market is booming, with the number of deals hitting the 1,000 mark for the first time in over seven years.
“Unsurprisingly, the growth in products has been accompanied by falling average rates, which have dropped by around 3% over the same period. This can help many borrowers to make easy savings, which means that they can generate even bigger returns on their investment.
“However, with a base rate rise on the horizon these low rates won’t last forever, so borrowers need to act fast to secure a low rate. Future legislative changes to the BTL market also mean that potential investors need to keep an eye on any announcements to ensure that BTL will still be profitable.”