The buy-to-let market is seeing the first signs of recovery with more products and lower rates for landlords
There are 280 more buy-to-let products available now than there were at the start of May 2020, according to Moneyfacts.
The financial information provider said that product choice at 75% loan to value (for landlords with 25% upfront) has increased by 46 two-year fixed rate deals and 54 five-year fixed rate mortgages.
Those needing a mortgage at 80% of the property’s value will find 26 more two-year fixed rate products and 20 more options available for those seeking a five-year fixed rate than a month ago.
Plus average rates on both two and five-year fixed rate buy-to-let products at 80% loan to value have fallen by 0.49% and 0.67% respectively.
Average interest rates on fixed buy-to-let mortgages have risen slightly for two and five-year fixed rates overall, due to the increase in the number of products that these averages are based on.
Eleanor Williams, finance expert at Moneyfacts, said: “This positive growth in choice is reflected in the higher LTV tiers, with deals for landlords with just a 25% or 20% deposit or equity keeping pace across two and five-year fixed rate options.
“This is encouraging considering that early in the Covid-19 crisis, providers were focused on supporting existing customers and restrictions meant that physical valuations were not feasible, seeing many lenders reduce their offerings to lower risk, lower LTV products.
“As we begin to see indications that the buy-to-let market may be starting to recover, the full economic impact of the current crisis is still not yet clear for tenants and landlords alike. However, those who are in a position to consider capitalising on possible falls in house prices to expand their property portfolios or indeed those looking to switch their current deal, may wish to move quickly.”