Buy-to-let product numbers recovering, says Moneyfacts – Mortgage Finance Gazette
The number of buy-to-let (BTL) loans available on the market now stands at 2,400, says Moneyfacts.
This is the highest amount seen since July 2022, when there were 2,746 for borrowers to choose from and, Moneyfacts says, is an ‘encouraging sign of recovery’.
A month ago, there were 2,246 deals on the market and, a year, ago, 3,332.
Moneyfacts adds that BTL fixed rates have fallen as of late, with the average two-year fix now standing at 5.81% compared to 5.95% last month and the average five-year fixed rate being 5.72% currently, compared to 5.85% in February.
However, a year ago, these prices stood at 3.05% and 3.29%, respectively.
“It is encouraging to see BTL product choice gradually recover from the shock surrounding the fiscal announcement,” says Moneyfacts finance expert Rachel Springall.
“The choice of deals to landlords plummeted and both the average two and five-year fixed rates rose to 6% towards the tail end of 2022, but thankfully, both rates have slowly dipped below this level.”
Springall continues: “The drop in average BTL rates appear more subdued than seen within the residential mortgage sector, but lenders have made moves to entice new business despite some investors’ concerns surrounding rental income margins.
“As both the average two- and five-year fixed rates sit above 5%, compared to around 3% a year ago, it’s clear that landlords are likely to see their monthly repayments much higher than they perhaps anticipated.”