Spike in first-time landlord buy-to-let deals | moneyfacts.co.uk

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 It is now over 6 months old so the content may be out of date.

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 01/10/2019

First-time landlords looking for a buy-to-let mortgage will find there is even more choice available than ever before. There are currently 1,474 buy-to-let mortgages available to first-time landlords, an increase of 297 in the last 12 months.

The research from Moneyfacts.co.uk also confirmed that the average fixed rates for two and five year buy-to-let mortgage deals had also seen a slight reduction from October 2018.

As the Government phases out the tax relief on mortgage interest payments by April 2020 and the market adheres to stricter lending criteria rules introduced by the Prudential Regulation Authority, borrowers will be pleased to find that lenders are still working hard to expand their range to cater for prospective landlords.

Buy-to-let market analysis – First-time landlord products


Oct 2014

Oct 2018

Jul 2019

Oct 2019

Average two-year fixed rate





Average five-year fixed rate





Number of overall products





Source: Moneyfacts.co.uk

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“It’s encouraging to discover that first-time landlords have a huge choice of deals right now, particularly during a time of economic uncertainty. However, landlords will need to keep a close eye on their projected profit margins, especially as tax relief on mortgage interest will be scrapped in April 2020.

“Landlords are already feeling the squeeze to make a decent profit within the buy-to-let sector, with the average landlord left with just £2,000 from an annual return of £13,000 once landlord costs are paid, according to recent research by lettings platform Howsy.

“So, while lenders work hard to accommodate prospective investors with an array of buy-to-let options, the costs of managing a property or concerns about a volatile property market could deter some from investing in this arena altogether. In fact, according to the Land Registry, house price growth slowed to 0.70%, the lowest in almost a decade.

“As it is a mere few months until tax reliefs are scrapped, it’s vital consumers seek independent advice to work out whether buy-to-let is a viable investment opportunity for them and to be made aware of upcoming changes facing the market.”

Research released this week from Paragon Bank showed that only 8% of landlords expect to buy a property in the next quarter and the gap between those intending to sell and those intending to buy has widened to 15%.


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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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