The number of buy-to-let (BTL) products on the market is higher today than the number available in March 2020, Moneyfacts says. There are now 2,968 BTL products available, compared to 2,897 pre-pandemic. This is the greatest number recorded since October 2007, when there were 3,305 options for landlords to choose from, Moneyfacts adds.
The data also shows, however, that lenders are less eager to extend funds to landlords with smaller equity: in March 2020 there were 32 products at 85% loan to value, while there are just 19 today. And at 85% loan to value, the average two-year fixed rate has increased from 4.70% to 5.61% over the same time frame and the average five-year fixed rate has gone up from 5.34% to 5.83%.
At all loan to value’s, price increases are less severe – here, the average two-year fixed rate has risen from 2.77% to 2.94% from Mach 2020 to today, and the average five-year fixed rate across all loan to value’s has moved from 3.24% to 3.25%.
Moneyfacts finance expert Eleanor Williams adds: “As it stands, compared to a pre-pandemic September 2019, both the average two- and five-year fixed buy to let rates are lower by 0.03% and 0.19% respectively, indicating rate pricing competition for those looking for new finance for an investment property.”
By Gary Adams (Moneyfacts)
27th September 2021