Mortgage choice soars for first time landlords

The choice of buy to let mortgage deals for first time landlords has soared according to the independent market monitor Moneyfacts. 

“Our data shows that there are currently 2,235 products on offer to first time landlords, up from 1,311 deals this time last year” explains Moneyfacts’ Eleanor Williams. 

“First time landlords concerned about potential future rate rises may wish to consider locking into the mid-term stability that a five-year fixed rate product provides. 

“There has been a 0.16 per cent year-on-year rate drop experienced by the overall average five-year fixed rate for all landlord types, which may be encouraging news, and the equivalent rate for first timers has fallen by 0.19 per cent over the same time period to 3.47 per cent. 

“However, those who might prefer the shorter commitment of a two-year fixed rate could be disappointed to see that at 3.19 per cent there has been a 0.09 per cent increase in the average two-year fixed rate for first time landlords since February 2021, even though the equivalent overall average rate has fallen by 0.07 per cent.”

Moneyfacts cites the Rightmove Rental Trends Tracker which indicates that rents have risen at the fastest rate on record, while tenant demand has almost doubled - making buy to let unusually attractive. 

But Moneyfacts adds that while mortgage providers seem to be working hard to cater deals for prospective landlords, those individuals deciding whether this is the right time for them to join the buy to let arena might be wise to secure the support of a qualified adviser in assessing their choices.

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