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Buy To Let Mortgage Choice Hits New High

The choice in buy to let mortgage products has hit the highest level seen since before the global financial crisis.

Figures released by Moneyfacts have shown that landlord choice when it comes to buy to let mortgage finance products has increased hugely over the past few years.

Total product numbers have increased by 397 over the past year and by 706 over the past two years to now give buy to let investors a total choice of 2,162 products today.

The choice in buy to let finance products has not been higher since October 2007, when 3,305 products were available.

Interest rates on buy to let mortgages have started to creep up however, despite the huge choice. The average two-year fixed buy to let rate has increased by 0.20 per cent to 3.12 per cent since September 2018 and the average five-year fixed rate has increased by 0.15 per cent over the same period.

Finance expert at Moneyfacts, Darren Cook, said: ‘It is encouraging that buy to let landlords have more mortgage choice than they have had at any time in almost 12 years.

‘Despite ongoing uncertainty in the property market, providers are not shying away from offering landlords a greater choice of products, although it is also evident from our research that heightened competition to try and attract buy to let business has not resulted in a fall in interest rates, as has recently happened in the residential mortgage sector.’

He continued: ‘As there appears to have been no sustained increases in interest SWAP rates since September 2018, a strong argument can be made that the recent increases to buy to let mortgages interest rates have been a result of buy to let mortgage providers attributing a little more to risk into their product rates due to uncertainty over future economic conditions.’

Source: Residential Landlord