Increase in Mortgage Deals Available for Buy-to-let Property Investors

Increasing Number of Buy-To-Let Mortgage Deals Available

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Property investors are seeing an increase in the number of buy-to-let mortgage deals coming to market.

Buyer demand for UK property is exceptionally strong with sales agreed up 57% in April 2021 compared to April 2019; therefore, this additional choice for mortgage deals is excellent news for investment property buyers.

During the period of March to April 2021, the available mortgage deals increased by 85, according to the Moneyfacts UK Mortgage Trends Treasury Report.

Higher loan-to-value mortgages, requiring smaller deposits have seen the highest increase. The increase in mortgage deals and the higher loan-to-value mortgages coming to market displays the confidence of mortgage lenders as the UK economy is bouncing back quicker than expected, with the COVID-19 restrictions being lifted throughout the spring.

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Buy-to-Let Mortgages for UK Property Investors

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Mortgage deals for first time buy-to-let investors have also increased.

During the past year, more first-time property investors have entered the buy-to-let market as savvy investors are capitalising on increasing rents, the shortage of properties to the rental market and the increasing property prices.

With the continued strong performance of the UK housing market and better than expected start to the UK’s economic recovery, buy-to-let mortgage lenders’ are more confident in lending to new landlords.

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Low Buy-to-Let Mortgage Interest Rates

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In March 2020, the Bank of England reduced the base rate to 0.1% and it has remained at this record low ever since as the UK gradually bounces back economically from the COVID-19 pandemic.

Interest rates on average 2-year fixed interest mortgage deals decreased slightly from 2.58% to 2.57% with the average 5-year fixed increasing marginally from 2.77% to 2.79% according to Moneyfacts. This increase is an average across the market; therefore, the increase in lower deposit mortgage products, which typically carry a higher rate of interest, will have had an impact.

Interest rates are still very low, with reductions in interest rates across many different products over the past month, meaning that there is a range of competitive buy-to-let mortgage deals available on the market. Product fees charged to secure a mortgage deal has also decreased on average as the market becomes more competitive, which is great news for borrowers.

Click here to explore the range of buy-to-let property investment opportunities on offer for savvy property investors to capitalise from historically low mortgage interest rates.

Source: Moneyfacts UK Mortgage Trends Treasury Report