The number of buy-to-let mortgage products has grown almost threefold compared to the same period last year to 2,581 and fixed rates have started to come down, research has found.
According to Moneyfacts, the total number of buy-to-let products has jumped from 988 in October last year to around 2,581 this year.
The number of products has also increased month-on-month from 2,475 in September this year to over 2,500 currently.
There has been significant growth in two-year fixed rates, which have increased from 183 in October last year to 773 at the moment.
Within that, two-year fixed rates at 60% loan to value (LTV) nearly doubled from 35 to 67; at 75% LTV deals rose from 84 to 379; and at 80% LTV the count grew from 28 to 97 over the past year.
On the five-year fixed rate side, total products increased from 375 to 1,136 in the last 12 months, with significant growth at 75% LTV.
At 75 per cent LTV, the product count has risen from 197 to 613 in the last year, and at 60% LTV the product count has jumped from 36 to 81 in the same period.
Five-year fixed rates at 80% LTV have gone from 52 in October last year to 85 currently.
BTL rates begin to fall
Moneyfacts said that fixed rates had started to tick down, with the average two-year fixed rate falling from 6.64% in September to 6.4% in October.
The average five-year fixed rate has fallen from 6.49% in September to 6.32% in October.
However, pricing remains elevated compared to last year, with the average two-year fixed rate pegged at 5.57% and the average five-year fixed rate was 6.05%.
Moneyfacts added that landlords coming off a five or two-year fixed rate and looking to remortgage will find the average rate at least 3% higher than previously, with the average two-year fixed rate in October 2018 coming to 2.9% and 2.92% in October 2021.
The average five-year fixed rate in October 2019 was 3.4% and in October 2021, it was 3.18%.
‘Encouraging signs in buy-to-let market’
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “The buy-to-let market has seen a healthy growth in product choice month-on-month and fixed rates have fallen over the same period.
“These are encouraging signs for landlords looking to refinance who may have been concerned about rates escalating.”
