Buy to let opportunities

Thanks to increased competition among lenders, the number of BTL products available has hit its highest level since the beginning of the financial crisis in October 2007, according to data from Moneyfacts. Over the past 12 months, the total number of available BTL products has risen by 21% to 2,396 in June, up from 1,929 the previous year.

The average mortgage rate has dropped thanks to the increasing options here, with an average two-year fixed rate now at 2.88% (compared with 6.36% in October 2007). These increased options and lower mortgage rates show there are currently some good opportunities out there for landlords.

Expanded options have also been seen in lenders’ criteria. As more challenger banks in particular have entered the BTL mortgage market, they are increasingly looking to specialise in criteria for professional landlords.

Recent data by the Intermediary Mortgage Lenders Association (IMLA) illustrates why this market is attractive to lenders. It analysed the Government’s 2018 English Private Landlord Survey, which showed that professional landlords now represent 48% of the Private Rented Sector (PRS) – up from 38% in 2010. The number of single-property landlords make up just 21% of the PRS today, down from 40% in 2010.

There have also been increased lending options for limited company BTL applications in the mortgage market, and an increasing number of professional landlords have been purchasing in this manner in recent years. Whether it ultimately works out as being cost effective for you depends on your income, mortgage rates and fees, along with capital gains tax, inheritance tax and income from dividends, as well as a myriad other factors.

If you are looking for a new or re-mortgage do get in contact and one of our qualified independent advisers will be happy to help.