Buy to let mortgage choice has increased for the fifth month in a row, according to independent mortgage market monitor Moneyfacts.
There are now 2,333 BTL products available - that’s 88 per cent of the number available before the start of the pandemic. This contrasts with the owner-occupier mortgage choice which is improving but is still only 68 per cent of its pre-pandemic level.
But Moneyfacts finance expert Eleanor Williams says: “As the level of product choice has returned, rates have also continued to climb, with both the average two and five-year fixed rates for all Loan To Values higher than the same rates year-on-year.”
She continues: “The only LTV tier where average fixed rates did not increase this month was at 60 per cent LTV, where both the two and five-year average fixed rates fell by 0.38 per cent and 0.27 per cent respectively, which may be good news for those with 40 per cent equity or deposit.”
The average two-year fixed rate is 0.28 per cent higher year-on-year, and at 3.05 per cent is the highest recorded since June 2019.
The five-year equivalent at 3.41 per cent is up 0.17 per cent compared to a year ago and is currently the highest since September of 2019.
Month-on-month, the only borrowing tiers where rates have fallen since February are at 60 per cent loan-to-value.
The proportion of the fixed rate BTL sector in which fee-free deals are offered or incentives such as free valuations or free legal fees are available has also reduced year-on-year – Moneyfacts says this is indicating that landlords may have to search a little harder for deals with the right incentive package for them.
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