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Number of BTL mortgage products hits record high

Buy-to-let investors now have plenty of choice when looking for a mortgage after new data revealed that the number of buy-to-let products currently on the market has reached an all-time high.

The data, taken from the latest Moneyfacts report, shows that the number of buy-to-let (BTL) products has increased by 29.8% in the past year to total more than 2,022,, up from 1,558 a year ago.

The table below highlights how much the market has improved in the last year alone, despite the current phasing out of mortgage interest relief.

Two Years Ago

One Year Ago

Six Months Ago

Today

Number of BTL Mortgage Products

1340

1558

1820

2022

Source: moneyfacts.co.uk 

Charlotte Nelson, finance expert at moneyfacts.co.uk, said: “The BTL market has seen quite a rollercoaster ride over the past year, including multiple changes that have required both landlords and providers to rethink their options. However, this hasn’t appeared to deter providers, marking an increase of 464 deals in just one year, which has seen the BTL market break yet another record and rise past the 2,000 mark for the first time on moneyfacts.co.uk’s records.”

The Prudential Regulation Authority (PRA) rules launched at the end of September 2017, which saw lenders having to apply stricter standards to those with four or more properties, could explain the boost to product numbers, according to Nelson. 

She explained that providers may well have opted to offer two different products to cater to the different borrower types.
 
Separate data from moneyfacts.co.uk shows that the number of limited company fixed rate options have also increased. 

“These extra products, which cater for landlords looking to reassess their options after the tax changes, are yet another reason why the overall product numbers have been boosted,” Nelson added. 

She continued: “Amid this upheaval, the market has seen many landlords and aspiring landlords take a step back to assess their options and figure out whether they are making the right choice. As a result, BTL providers are now competing for a smaller pool of customers. Offering variety in their range is one way in which they can compete.
 
“While it has been a tough time for the BTL market, the fact that the number of available deals is still growing shows it is still a viable option. However, any borrowers considering becoming a BTL landlord should seek the advice of a financial adviser, to ensure this is the right choice for them.”

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