3rd
Feb 2022
Data from Moneyfacts’ independent mortgage market monitor shows the available number of BTL mortgage products is now at a 15 year old record high.
2022 has started brightly with 3,528 BTL mortgage products for landlords after an additional 222 products appeared in December last year. The overall total is now recorded by Moneyfacts as the highest number on the market since September 2007, as well as having 945 more products than pre-Covid January 2020.
An average overall BTL two-year fixed-rate has risen for the second consecutive month by 0.4 per cent up to 2.94 per cent which is the highest since September 2020.
Whereas the five-year fixed rate overall average remains the same since October 2021 at 3.18 per cent, and is also the lowest since August 2020.
Last year in November there were only four deals that offered 85 per cent LTV however there are 28 products offering this rate, the highest since March 2020 and is way ahead of last year in January when there were not any offers available at this rate.
Eleanor Williams, finance expert at Moneyfacts, says: “The level of product choice available to landlords has continued to increase for the eighth consecutive month, with the number of options across all the LTV tiers improving.
“The rise of 222 deals is the highest month-on-month increase in availability that we have recorded since July 2021. At 3,528 total deals on offer, this is the largest number of BTL products we have seen in more than 14 years.
“Despite changes to regulations, taxation and the impact of the past 18-months, BTL lenders seem keen to entice borrowers, as there are almost 1,000 more products available now than there were two years ago in January 2020, before the onset of the pandemic.
“Following the increase in base rate by the Bank of England last month, we have seen the average two-year fixed rate for all LTVs rise by 0.04 per cent since last month to 2.94 per cent, a shift which echoed recent changes in the residential mortgage sector.
“Bar a 0.01 per cent month-on-month fall in the average two-year fixed rate at 80 per cent, average rates in the other LTV tiers either rose or remained the same this month, including a month-on-month jump of 0.25 per cent at 85 per cent LTV, fuelling the overall two-year average to rise.”
However Williams does make the point that the overall average five-year fixed rate has remained at 3.18 per cent over the last four months.
She continues: “Landlords looking to secure a five-year fixed rate in the brackets between 65 and 80 per cent LTV will find that the average five-year fixed rates in these tiers fell month-on-month, which is great news for those hoping to protect themselves from potential future rate rises with the stability of a mid-term fixed rate deal.
“Those who took out a 75 per cent LTV five-year fixed rate in 2017 and are looking for an equivalent deal now will find that, at 3.19 per cent, the average rate is 0.70 per cent lower now than when they secured their previous deal.”
News Archive »