The data shows there are 1,268 BTL products available for those investing in rental property for the first time. This marks a notable increase of 339 products in just two years.
As well as having significantly more products to choose from when taking out a BTL mortgage, investors are also benefitting from lower interest rates. Moneyfacts’ research shows that in the last two years, the average interest rate for a two-year fixed rate term for landlords has fallen from 3.19% to 2.83%.
Speaking to Moneyfacts, financial expert Charlotte Nelson commented:
“Not only do first-time landlords have more choice, but they have also seen rates fall by 0.36% over the same period.”
One factor that has influenced the surge in BLT products available to landlords is the fact that landlords who rushed to take out a two-year fixed BTL mortgage ahead of the additional 3% on stamp duty, which was introduced in April 2016, have seen their mortgage product coming to the end of its term. Subsequently, there’s plenty of business up for grabs in the BTL mortgage market and therefore lenders are keen to offer attractive products to landlords.
BTL five-year fixed terms witness record low rates.