Buy-to-let mortgage choices on the increase again

Buy to let mortgage choice has increased for the fifth month in a row, according to independent mortgage market monitor Moneyfacts.

There are now 2,333 BTL products available - that is 88% of the number available before the start of the pandemic. This contrasts with the owner-occupier mortgage choice which is improving but is still only 68 per cent of its pre-pandemic level.

But Moneyfacts says: “As the level of product choice has returned, rates have also continued to climb, with both the average two and five-year fixed rates for all Loan-to-Values higher than the same rates year-on-year.”

“The only LTV tier where average fixed rates did not increase this month was at 60% LTV, where both the two and five-year average fixed rates fell by 0.38 per cent and 0.27 per cent respectively, which may be good news for those with 40% equity or deposit.”

The average two-year fixed rate is 0.28% higher year-on-year, and at 3.05% is the highest recorded since June 2019.

The five-year equivalent at 3.41% is up 0.17% compared to a year ago and is currently the highest since September of 2019.

Month-on-month, the only borrowing tiers where rates have fallen since February are at 60% loan-to-value.

The proportion of the fixed rate BTL sector in which fee-free deals are offered or incentives such as free valuations or free legal fees are available has also reduced year-on-year – Moneyfacts says this is indicating that landlords may have to search a little harder for deals with the right incentive package for them.

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