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Buy-to-let deals on the rise

The number of buy-to-let mortgages has grown 70% since the market’s lowest point in September 2009, show figures from Moneyfacts.

In September some 95% of all buy-to-let deals available at the peak of the market in August 2007 were withdrawn.

But according to Moneyfacts the number of buy-to-let products available as at May 19 reached 304, an increase of 125 products over the last eight months.

Rates at higher LTVs also seem to be improving with products at up to 80% LTV accounting for 4.24% of buy-to-let deals in May, compared to just 1.4% in September.

The average two-year fixed rate deal has dropped to 5.66% from the 5.96% rate in September, with the average two-year tracker at 4.49% from 4.59% over the same period.

A spokesman for Moneyfacts says: “This is encouraging news for investors, especially those who were locked out of the market as the maximum available LTVs fell.

“Competition has returned to the market as lenders make cuts to their new borrowing rates.

“Saffron and Melton Mowbray Building Societies have returned to the market during the past month, while new lender Bank of China continues to successfully find its niche. Both are signs that this market is starting to become a more viable and safer option for lenders.”

 

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BOB HUNT, CHIEF EXECUTIVE, PARADIGM MORTGAGE SERVICES

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