Boost for landlords as buy-to-let mortgage choice grows

Landlords have some positive news in the buy-to-let market with a notable increase in product availability.

Moneyfacts data reveals that the availability of buy-to-let products has surged to a record high. This month, the total number of available buy-to-let deals (both fixed and variable) reached 3,560, the highest on Moneyfacts’ electronic records.

A closer look at the data shows a month-on-month increase of 92 five-year fixed deals and a rise of 114 two-year fixed deals.

Overall, average fixed rates for two- and five-year terms have increased month-on-month. However, Moneyfacts notes that the average two-year fixed rate is lower compared to the same period last year.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, commented, “Landlords searching for new deals will find that the choice of buy-to-let mortgages has hit a record high, which could instill a sense of optimism. Opinions on the buy-to-let market’s performance this year are mixed, but lenders are clearly striving to attract new business by offering new deals with higher loan-to-value ratios and even deals specifically designed for limited companies.”

Springall highlighted that there are more deals with a five-year fixed term than those with a two-year fixed term, both of which are at record highs. She added that five-year fixed buy-to-let mortgages have been more abundant than their two-year counterparts since June 2020.

While landlords are hopeful for a decrease in rates this year, Springall warned that “sticky inflation can delay further base rate cuts, and the swap rate market remains unpredictable.”