Increase in the number of buy-to-let products a positive sign
- Published: Tuesday 01 August, 2017
- Category: BTL mortgages
- By: Andrew Pelis
- Updated: Friday 04 August, 2017
New research indicates that whilst buy-to-let mortgage rates might still be dropping, the pace has slowed down, but the market has recovered from its uncertain start to the year and the number of mortgage products available has grown.
Moneyfacts research indicates an increase in the number of products available on the market since the start of the year, rising from 1,408 to 1,610.
According to the report, on average two-year fixed buy-to-let mortgage rates have reduced by 0.31% over the past 12 months, but this rate of reduction has slowed to 1 basis point to date in 2017, from 2.92% in January to 2.91% in July.
Charlotte Nelson, Finance Expert at Moneyfacts, commented:
“The BTL market has seen some turbulent times, with significant tax changes, tougher affordability rules and more changes to come into force in September. Yet, rates have continued on a downward path. Since the introduction of new regulation in January, however, the pace of the reductions has slowed considerably.
“Product numbers have been bolstered, giving landlords looking for a mortgage deal today more choice. This shows that after the initial shock of the changes in January, providers are keen to recover and keep the market buoyant.”
Jorden Abbs, head of operations at Commercial Trust, commented:
“The increase in the variety of buy-to-let mortgage products is very positive for our clients. It offers landlords more choice, but also underlines the ongoing commitment of lenders to this important market.
“With more choice comes the need to ensure that landlords are selecting the most appropriate product for their individual circumstances and this is where a specialist broker like Commercial Trust can make an enormous difference.”
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.