Buy-to-let mortgages bouncing back - Mortgages - News - Moneyfacts

News

Buy-to-let mortgages bouncing back

Buy-to-let mortgages bouncing back

Category: Mortgages

Updated: 10/05/2011
First Published: 10/05/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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.

Find the best mortgage for you - Compare buy-to-let mortgages



Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close