Buy To Let Updated:
The buy-to-let market has bloomed in recent times with the current number of mortgages available the largest at any time since the credit crisis began, research from Moneyfacts.co.uk has found.
The number of buy-to-let mortgages has recorded an eye-catching increase of late, following on from a successful 2011 for the market.
Today there are 486 buy-to-let mortgage products available to landlords, a number which has consistently increased in recent times.
Just two years ago, there were 243 buy-to-let mortgages in the UK – exactly half the number there is currently.
The market has also expanded considerably from one year ago when there were 386 buy-to-let deals to be had.
"During the peak of the credit crisis the number of buy-to-let deals shrank considerably as lenders saw it as a high risk area of the market," Louise Holmes, spokesperson for Moneyfacts.co.uk, commented.
"Many aspiring homeowners have had their property dreams dashed due to strict lending criteria and large deposits, meaning the only option left is to rent.
This increase in demand for rental properties has resulted in a degree of competition returning to the buy-to-let sector, giving it a well-needed boost.
As the number of buy-to-let deals has increased, so the average rate charged on the mortgages has fallen.
Two years ago, the average rate of a buy-to-let mortgage was 5.31%, falling to 5.00% 12 months ago.
Today, the average rate of a buy-to-let mortgage is 4.79%.
"These latest figures, particularly a reduction in the average rate, should make pleasing and encouraging reading for landlords and property investors," added Ms Holmes.
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