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BTL mortgage products increase as signs suggest the market is ‘starting to recover’


Consumer choice of buy-to-let (BTL) mortgage products has increased significantly in recent weeks, the latest figures show. 


The data, taken from the latest Moneyfacts report, reveals that there are 280 more buy-to-let products available now than there were at the start of May. 


Buy-to-let landlords looking to secure a mortgage at 75% loan to value (LTV) will find that there are now 46 more two-year fixed rate BTL deals and 54 five-year fixed rate mortgages available compared with a month ago. 


Those looking for a mortgage at 80% LTV will find 26 more two-year fixed rate products and 20 more mortgage deals offered on a five-year fixed rate than a month ago.


Eleanor Williams, finance expert at Moneyfacts, commented: “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.”

The data from the financial information provider also reveals that average rates on both two and five-year fixed rate buy-to-let products at 80% LTV have dropped by 0.49% and 0.67% respectively.


Williams added: “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.”


Click Here to see the graph.


Source: Moneyfacts Treasury Reports. Data shown is as at the first of the month unless otherwise stated. 

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