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.”
|Number of deals with a cashback incentive
|Proportion of all products with a cashback incentive