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Number of buy to let mortgage products surges to 1,725
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Original Source: Letting Agent Toady.
Original Author: Graham Norwood.
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The number of new buy to let mortgages available to investors has hit 1,725 – its highest point since 1,942 products were recorded in December 2007, almost a decade ago.
Since January 1 this year – when the market saw a dramatic drop in the number of products available to landlords – the number of deals on offer has gone from strength to strength, culminating in a rise of seven per cent in the past four weeks, the highest month-on-month growth Moneyfacts has seen in 2017.
“Despite reduced BTL activity in the first quarter, competition among lenders remains high as providers fight to retain their standing in a diminished market. Rates have also fallen with the average two-year BTL fixed rate down from 2.91 per cent in August to 2.86 per cent in September – another record low” says Moneyfacts spokesman Charlotte Nelson.
She says providers are now starting to get ready for further changes at the end of September, which will see lenders apply stricter standards to those investor-borrowers with four or more properties.
It is still uncertain how providers will choose to react to the new changes, but product numbers could climb as providers start to target their products to the two different types of borrower. However, despite this increased choice, rates might not improve.
“The extra pressure on the buy to let market could be a turning point, with the competition that is currently alive and well amongst providers perhaps starting to ebb as they shift their focus to ensuring the new regulation is followed” warns Nelson.
