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Choice of BTL products biggest in over a decade: Moneyfacts

The number of buy-to-let mortgage products available on the market is the highest since the financial crisis in October 2007, according to Moneyfacts.

The current number of two-year BTL products is 2,396, this is up 21 per cent year-on-year, and the number has increased by 143 products on a monthly basis.

In addition, the present quantity of five-year BTL products is 785, up 23 per cent on a yearly basis, and has increased by 55 products month-on-month.

The average two-year BTL mortgage rate has also increased, rising from 2.88 per cent to 3.05 per cent in the year to June 2019.

Furthermore, the average five-year fixed rate was recorded at 3.43 per cent in June 2018, rising to 3.54 per cent as of June 2019.

Moneyfacts finance expert Darren Cook says: “The BTL market has experienced a number of regulatory changes during recent years, however, it seems that product competition within this specialised mortgage area is continuing to grow.

“The increase in the BTL average rates contrasts with the downward trajectory of their residential mortgage counterparts, where product competition seems to have instead resulted in rates falling.

“This disparity in trends is likely to be attributed to the different approach lenders take to risk between these two sectors, and that economic uncertainty may be having a more adverse influence on the BTL mortgage market than it is having on the residential mortgage market.”

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