A renaissance in the buy-to-let sector appears to be well under way after the number of buy-to-let mortgage deals available to property investors reached its highest level since October 2008.
New research from Moneyfacts.co.uk has revealed there are currently 463 buy-to-let mortgages available on the market, a rise of 55% on the 299 that were available in May 2010.
The revival is confirmed with the news that the number of lenders offering buy-to-let deals has also increased, from 48 last May to 64 at present.
Furthermore, in a sure-fire sign that competition is returning to the market, as the availability of buy-to-let mortgages has increased, the average interest rate being charged by lenders has been falling too.
The average rate on buy-to-let deals currently stands at 4.97%, down from the average of 5.30% seen a year ago.
With buy-to-let having always been considered a high risk area of the mortgage market, Louise Holmes, spokesperson for Moneyfacts.co.uk, said that following the financial crisis, many lenders withdrew their rental products.
Ironically, however, demand for rental properties has increased over recent years, mainly as a result of the crisis.
With lenders withdrawing the majority of their high loan-to-value deals from the residential mortgage market, many people have had little choice but to rent rather than purchase a home.
"These latest figures, particularly the reduction in the average rate, suggest that the buy-to-let market could be returning to a competitive state," added Ms Holmes.
"This will no doubt please landlords and property investors who have endured a tough time over the past few years."
Whether you're a prospective or existing landlord, finding the right buy-to-let mortgage deal is vital.
We have recently teamed up with buy-let-let mortgage broker Openworks to help make your life easier.
In addition, our buy-to-let mortgage best buy charts are constantly updated with the best buy-to-let mortgages that become available.
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