Buy-to-let mortgage choice hits record high
The number of buy-to-let mortgages on the market has hit its highest ever level, as lenders compete for landlord borrowers, analysis has revealed.
There are now more than 2,000 buy-to-let products, up from 1,558 this time last year, according to Moneyfacts.
The increase in options from providers comes despite regulation and taxation changes that are credited with dampening appetite in the sector.
Charlotte Nelson from Moneyfact, said: “The buy-to-let (BTL) market has seen quite a rollercoaster ride over the past year, including multiple changes that have required both landlords and providers to rethink their options.
“However, this hasn’t appeared to deter providers, marking an increase of 464 deals in just one year.”
New Prudential Regulation Authority (PRA) landlord borrowing rules launched at the end of September mean lenders have to apply stricter standards to those with four or more properties.
The change could explain the boost to product numbers, as providers offer two different products to cater to the different borrower types, according to Nelson.
Moneyfacts recently found the number of limited company buy-to-let mortgages has also increased.
Nelson added: “Amid this upheaval, the market has seen many landlords and aspiring landlords take a step back to assess their options and figure out whether they are making the right choice.
“As a result, buy-to-let providers are now competing for a smaller pool of customers.
“Offering variety in their range is one way in which they can compete.
“While it has been a tough time for the BTL market, the fact that the number of available deals is still growing shows it is still a viable option.”