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Number of buy-to-let mortgage deals at 7-yr high

Number of buy-to-let mortgage deals at 7-yr high

Category: Buy To Let

Updated: 22/05/2017
First Published: 25/08/2015

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 It is now over 6 months old so the content may be out of date.

If you're thinking of becoming a landlord or want to expand your portfolio, now could be a great time to do it. Not only are average mortgage rates at record lows, but our research shows that the number of buy-to-let (BTL) deals available has hit a seven-year high!

More choice, lower rates

The figures show that product numbers have soared in recent months, arguably in response to the pension freedoms allowing retirees to access their pension pots. It was anticipated that many could use this opportunity to re-invest their hard-earned savings into property, and providers appear to be accommodating this desire by launching a whole raft of new deals!

The number of BTL mortgages available has risen dramatically in light of this demand, with the figure surpassing 1,000 for the first time since April 2008. As the table below shows, there are now 1,011 BTL mortgage deals available, up from 681 at this point last year and a dramatic turnaround from the recent low of 460 recorded two years ago.

Apr-08 Aug-08 Aug-13 Aug-14 Today
Number of BTL deals 1,128 476 460 681 1,011
Average BTL variable rate mortgage 6.66% 6.84% 4.34% 3.99% 3.60%
Average BTL fixed rate mortgage 6.48% 7.34% 4.37% 4.29% 3.80%
Source: Compiled: 25.8.15

"With high rents and poor savings rates, it's little wonder that the BTL market is booming, with the number of deals hitting the 1,000 mark for the first time in over seven years," said Charlotte Nelson, finance expert at "The boom in deals has undoubtedly been boosted by providers taking advantage of the new demand from thousands of pensioners making the most of the new pension freedoms, fuelling competition in the sector."

Not only that, but average BTL mortgage rates have fallen dramatically, too! The average rate for a fixed BTL mortgage currently stands at 3.80%, down from 4.29% a year ago and a whopping 7.34% in August 2008, while the average variable BTL rate is even lower at 3.60%. This means that prospective landlords have the ideal combination of high availability and low rates, and with demand for rental properties only ever seeming to be on the rise, it could be a great time to get in on the action.

The fact that average rates have dropped by around 3.00% in the last seven years can help many borrowers make great savings, allowing them to generate even bigger returns on their investment. However, you'll need to act fast if you want to secure one of these record-breaking rates, because with a base rate rise on the horizon – not to mention future legislative changes to the BTL market, points out Charlotte – they won't last forever!

However, this doesn't mean you should jump right in without doing the necessary research. "More deals on the market mean that it's more important than ever to shop around and weigh up the true cost of a mortgage to ensure that the best deal is secured," added Charlotte, "so anyone thinking about entering this sector would be wise to seek the advice of an independent financial adviser to see if BTL really is the best place for their investment."

If you've taken the time to crunch the numbers and know that this really is what you want to do, it all comes down to finding the right mortgage to make your investment work as hard as possible. Check out the top BTL deals available to get started, and see if you can benefit from the competitive market.

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.