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Growth in buy-to-let = more choice for landlords

Growth in buy-to-let = more choice for landlords

Category: Buy To Let

Updated: 23/07/2014
First Published: 23/07/2014

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 It is now over 6 months old so the content may be out of date.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 buy-to-let (BTL) sector has enjoyed a surge of growth in the last year. Not only are prospective and veteran landlords alike feeling more positive about the industry, but its ever-increasing popularity is resulting in a much larger number of suitable BTL mortgages – it's a win-win situation.

And it's growing fast. Research from reveals that the number of products on the market to service this increased interest in BTL has risen to highs not seen since 2008 – in July 2013, the number of BTL mortgages available had grown to 466, but today that number has risen by an impressive 42.7% to 665.

At the same time, average interest rates charged for both fixed and variable deals have fallen to the lowest levels ever, at 4.17% for the average fixed rate and 4.03% for the average variable rate.

It's great news for landlords, as it not only means they can benefit from a greater selection of products, but that they can enjoy record low rates (and repayments) too. Our best buy tables show just how low you can go, and if it's time to remortgage or take that first step into BTL waters, now could be a great time to get in on the action.

But just what could be behind this surge of interest in BTL? Sylvia Waycot, editor at, offers this explanation:

"Lender interest in the BTL market may be fuelled by the knowledge that it falls outside of the recent Mortgage Market Review, [which] makes the process of granting any BTL mortgage quicker and simpler as it isn't subject to the new affordability criteria that's starting to clog up the mainstream mortgage market."

The mainstream market is certainly starting to feel the effects of these stricter affordability checks. Despite Help to Buy attracting more potential borrowers into the housing market, tighter criteria combined with rising house prices (and therefore the need to amass a bigger deposit) means it's actually becoming harder for some people to get on the housing ladder. Enter BTL, and lenders are catering accordingly.

"In addition, the new pension regime means that retirees could consider BTL as a way of supplementing their income instead of purchasing an annuity," added Sylvia.

"Ultimately, this all points to the BTL market being here to stay and to remain attractive to lenders, hence the surge in products on offer for landlords who seem assured of a healthy supply of tenants."

What Next?

Compare the best buy to let mortgages in our charts

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.