Landlords looking for a remortgage deal and investors considering a buy-to-let (BTL) property will be pleased to see that the BTL mortgage market seems to be showing the first signs of recovery.
Indeed, research carried out by Moneyfacts.co.uk has found that since May, the number of BTL deals (fixed and variable) available at all loan-to-values (LTVs) has increased by 283, with the number of two year fixed deals increasing by 134 and the number of five year fixed deals increasing by 164. Saying this, while more competition has been entering the BTL market over the last two months, since May, the average rates on both two and five year fixed rate deals at all LTVs have increased slightly, however this could be due to higher LTV deals returning to the market and therefore pushing up the average rate.
|2020 BTL mortgage product number analysis|
|BTL product count - fixed and variable rates||2,583||2,897||1,887||1,455||1,738|
|Two-year fixed rates BTL - all LTVs||823||914||610||491||625|
|Five-year fixed rates BTL - all LTVs||879||1,000||695||480||644|
|2020 BTL average rates analysis|
|BTL two-year fixed - all LTVs||2.82%||2.77%||2.71%||2.51%||2.61%|
|BTL five-year fixed - all LTVs||3.19%||3.24%||3.16%||2.94%||2.97%|
"The mortgage market as a whole remains an evolving and complicated landscape, as the ongoing impact of the recent lockdown has affected product choice and rates,” said Eleanor Williams, finance expert at Moneyfacts.co.uk. “However, as our latest research shows, the buy-to-let sector has adapted well and there are indications that landlords may have cause for positivity."
In fact, with rates as low as 1.19% available in the BTL chart today, it seems that there are some highly competitive deals available to landlords. Saying this, the BTL mortgage market has not seen a harmonious return to pre-lockdown competition and landlords looking for a 60% LTV will have seen average rates rise since the beginning of the year, while 80% LTV rates have fallen.