BTL Deals At Highest Level Since March 2020 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 30/03/2021

The number of buy-to-let (BTL) mortgage deals available is at its highest level since the pandemic began impacting the UK economy in March 2020, but at the same time rates have risen to a two-year high.

Research carried out by Moneyfacts.co.uk found that there are now 2,333 BTL mortgage deals available to landlords, which is the highest number seen since March 2020 when there were 2,897 deals. While this has resulted in more choice for landlords, average rates have also risen during this time and the average five year fixed BTL rate now stands at 3.41%, its highest level since September 2019 when it reached 3.44%. Meanwhile, the average two year fixed BTL rate currently stands at 3.05%, and again this is the highest it has been in nearly two years, when it also stood at 3.05% in June 2019.

As the below table shows, year-on-year the average rates on both two and five year BTL mortgage deals at 60% loan-to-value (LTV) and 80% LTV have increased. Saying this, lower than average rates are available in the BTL mortgage charts, as Eleanor Williams, finance expert at Moneyfacts.co.uk, explained: “It is important to note though that these are averages, and therefore while representative of the market as a whole, there are some very competitively priced products available, with some – depending on LTV and criteria – available at below 2%. Therefore, those who are hoping to refinance or take on a new deal would do well to shop around.”

 

Buy-to-let mortgage market analysis
  1 March 2020 1 March 2021
BTL product count - fixed and variable rates 2,897 2,333
BTL two year fixed - all LTVs 2.77% 3.05%
BTL two year fixed - 80% LTV 3.56% 4.14%
BTL two year fixed - 60% LTV 1.89% 2.14%
BTL five year fixed - all LTVs 3.24% 3.41%
BTL five year fixed - 80% LTV 3.98% 4.29%
BTL five year fixed - 60% LTV 2.31% 2.52%

 

Along with the increase in rates, landlords may also be disappointed with our findings that show on the percentage of deals that offer an incentive, such as free valuations or no legal fees, has also fallen year-on-year. “Although interestingly, the proportion of the market where cashback is available has increased, not only year-on-year, but by 8% over the last month,” Williams revealed.

This means that although lenders have been withdrawing some incentives and increasing rates, there are still good deals available and landlords would be wise to check the BTL mortgage charts to see what is available and consider speaking to a mortgage broker who will be able to highlight the best deals for their individual requirements.

Thinking about becoming a landlord?

If you are thinking about buying your first BTL property, read our guide on five steps to becoming a BTL landlord for more information. You can also see what BTL mortgage deals are available to first-time landlords by visiting our first-time landlord mortgage chart.

Disclaimer

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