Moneyfacts UK Mortgage Trends Treasury Report data reveals that there are glimmers of hope emerging for the buy-to-let mortgage market, following the significant initial impact of the Coronavirus pandemic. In welcome news to many landlords, the choice in products has increased, and some higher loan-to-value (LTV) average rates have reduced. These shifts are likely to be linked with lenders’ focus on supporting existing borrowers alleviating and of course the Government guidance on valuation restrictions lifting.
Overall, there are 280 more buy-to-let products available now than there were at the start of May 2020. The product choice at 75% LTV has increased by 46 two-year fixed rate deals and 54 more products are available in the five-year fixed rate bracket. The picture at 80% LTV is similar, with this traditionally smaller sector increasing by 26 two-year fixed rate products and 20 more options available for those seeking a five-year fixed rate over the month.
Average interest rates on fixed buy-to-let mortgages have risen slightly for two and five-year fixed rates overall, likely due to the increase in the number of products that these averages are based on. However, there is cause for celebration for landlords who have only a 20% deposit available, as rates on both two and five-year fixed rate buy-to-let products at 80% LTV have reduced, by 0.49% and 0.67% respectively, which will be great news for those considering purchasing or at remortgaging at this LTV.
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