Our latest findings reveal that the number of deals for first-time landlords has increased by 13% since the start of the year to reach a record high level. So, those considering entering the buy-to-let (BTL) market now have more products to choose from than ever before.
Specifically, there are now 1,268 BTL products available to first-time landlords, which marks an increase of 339 in just two years. As finance expert Charlotte Nelson reports: "Not only do first-time landlords have more choice, but they have also seen rates fall by 0.36% over the same period."
|Number of first-time landlord products||929||1,034||1,123||1,268|
|Average two-year fixed rate for first-time landlords||3.19%||2.85%||2.84%||2.83%|
These welcome numbers come despite the turmoil that has overtaken the market since last year's regulatory and tax changes. They suggest aspiring landlords haven't been put off, with figures from Accord showing that the number of applications from first-time landlords has doubled over the past 12 months.
"Providers know all too well that many borrowers on their mortgage books will be coming to the end of their term and reassessing their deal, so they need to attract new business," Charlotte explains. "As such, they're enhancing their ranges and offering these extra deals to entice those customers who are new to the market, thereby breathing new life into their mortgage book."
While there's clearly plenty of incentive for providers to remain competitive, savings rates are also doing their part in making bricks and mortar sound like a decent and safe investment to borrowers. With rent costs still moving upwards and first-time landlord mortgage rates falling, the potential for a decent return that can outstrip any savings rate is alive and well.
However, Charlotte warns new landlords not to get too far ahead of themselves. "Since [last year's regulatory changes], they face checks and questions about their finances, and will need to do their homework to ensure they get the best deal. [Additionally,] BTL is not without its risks, and anyone looking to enter this sector would be wise to seek the advice of a financial adviser to see if this is the best route for them."
Aspiring landlords will be happy to hear that we have a dedicated first-time landlord chart, while those looking to remortgage or purchase another BTL property may want to take a look at our overall BTL Best Buys.
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.