The buy-to-let (BTL) market has seen its fair share of turbulence recently, with significant regulatory changes and altered taxation seeing both landlords and providers on uncertain ground throughout the last few years. Despite all this uncertainty, however, the number of BTL products has now passed the 2,000 mark for the first time on our records.
As a result, there are 2,022 BTL mortgage products available at the moment, which means there should be plenty of choice out there for landlords who haven't been scared away by all the changes. Indeed, providers might have increased the number of deals by 464 in just one year precisely because they don't want hesitant landlords to leave the market altogether.
|Two years ago||One year ago||Six months ago||Today|
|Number of BTL mortgage products||1,340||1,558||1,820||2,022|
"Amid the upheaval, the market has seen many landlords and aspiring landlords take a step back to assess their options," commented moneyfacts.co.uk finance expert Charlotte Nelson. "As a result, BTL providers are now competing for a smaller pool of customers. Offering variety in their range is one way in which they can stay relevant."
The changes could also have had a more direct effect on the market, as the Prudential Regulation Authority's rules on portfolio landlords (those with four or more properties) could very well have boosted product numbers. With lenders now having to apply stricter standards to portfolio landlords, Charlotte said that "Providers may well have opted to offer two different products to cater to the different borrower types."
Another aspect adding to the number comes from last week's news that the number of fixed rate mortgages available to limited companies had reached an all-time high. "These extra products, which cater to landlords looking to reassess their options after the tax changes, are yet another reason why the overall product numbers have been boosted," stated Charlotte.
Overall, it has certainly been a tough time for the BTL market, but "the fact that the number of available deals is still growing shows it is still a viable option," Charlotte concluded. "However, any borrowers considering becoming a BTL landlord should seek the advice of a financial adviser, to ensure this is the right choice for them."
With so much choice now available, why not have a look at the best buy-to-let deals currently available to see if you could benefit?
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.