Buy-to-let numbers on the rise - Mortgages - News - Moneyfacts

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Buy-to-let numbers on the rise

Buy-to-let numbers on the rise

Category: Mortgages

Updated: 29/07/2011
First Published: 29/07/2011

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 It is now over 6 months old so the content may be out of date.

The number of buy-to-let (BTL) products is currently at its highest point since September 2008, research by Moneyfacts.co.uk has found.

Figures show that the number of products in the sector has risen steadily since July 2009, when it fell to just 187.

However, there are now 505 BTL mortgages on the market, with the marked increase resulting in competition within the sector.

"Lenders are currently offering a range of options for landlords, where as a few years ago some had just one deal available

"Increased competition has driven down BTL mortgage rates, particularly on fixed rate deals where the average rate has fallen by nearly 1%, despite no change in base rate," said Michelle Slade, spokesperson for Moneyfacts.co.uk.

Two years ago, the average fixed rate BTL mortgage was 6.03%; currently the rate stands at 5.05% - a fall of 0.98%.

The cost of variable products has also fallen, from 4.91% to 4.34% on average, a drop of 0.57%.

Data from Moneyfacts.co.uk shows that demand for BTL products has increased threefold since March last year.

However, Ms Slade warned that the expansion in the sector could affect the first time buyer market.

"The properties that landlords are buying are, in many cases, those that would also be a target for first-time buyers," she said.

"This poses a further problem for first-time buyers, many of whom are already struggling to get onto the property ladder."

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