Buy to Let

Competition drives buy-to-let deals to decade high

The number of buy-to-let mortgage deals available has climbed to its point in almost a decade.

The number of deals available to buy-to-let borrowers has increased by 7 per cent in the past month alone.

The latest Moneyfacts UK Mortgage Trends Treasury Report reveals there are 1,725 deals currently available, up from 1,339 a year ago.

The last time there were so much products available to landlords was December 2007 when there were 1,942 deals on the market.  

Moneyfacts finance expert Charlotte Nelson says: “Despite reduced BTL activity in the first quarter of this year, competition among lenders remains high as providers fight to retain their standing in a diminished market.”

Because of that the average rates on BTL deals have fallen to a record low, she adds.  

The average two-year fixed rate was 2.86 per cent in September, down from 2.91 per cent in August.

Several providers have also been cutting the fees on their products.  

But with new regulation set to come into force at the end of the month, these trends may not last.

Nelson adds: “Providers are now starting to get ready for further changes at the end of September. It will see lenders apply stricter standards to those with four or more properties.

“The extra pressure on the buy-to-let market could be a turning point. Competition among providers could start to ebb as they shift their focus to ensuring the new regulation is followed.”

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