A growing number of mortgage lenders are trying to lure both residential and buy-to-let mortgage borrowers with a wide range of cashback incentives, according to new figures.
The mortgage data from Moneyfacts shows that 444 buy-to-let deals currently come with cashback, which represents 19% of all products in the BTL market, up from the 16% - 291 products in total - a year ago.
The figures also reveal that more than half - 266 - of the BTL products on offer with cashback are available at the higher loan-to-value tiers of 70%, 75% and 80%, which may particularly appeal to first-time landlords.
According to Moneyfacts, 29% of all residential products - 1,459 in total - come with a cashback incentive, up from 26% - 1,249 products - a year ago.
Darren Cook, finance expert at Moneyfacts, said: “An incentive of cashback to assist landlords in covering the costs of a buy-to-let mortgage is becoming a more prominent feature of the buy-to-let market.
“Especially considering last year's upheaval in this sector, landlords will be looking for any way to cut costs and increase their margins. It seems that providers are obliging.”
Buy-to-let |
Nov-11 |
Nov-16 |
Nov-17 |
May-18 |
Today |
Number of deals with a cashback incentive |
93 |
213 |
291 |
339 |
444 |
Proportion of all products with a cashback incentive |
22% |
15% |
16% |
17% |
19% |
Source: Moneyfacts.co.uk
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