There is more choice in products, and some higher loan-to-value average rates have reduced, according to Moneyfacts
There has been a considerable rise in the range of mortgage choice available to landlords as the buy to let (BTL) market comes starts normal trading again post-lockdown.
According to independent mortgage monitor Moneyfacts, there is more choice in products, and some higher loan-to-value average rates have reduced.
Overall, now there are 280 more buy to let (BTL) products available currently compared with just five weeks ago, in early May.
The choice of products at 75 percent loan to value (LTV) has risen by 46 two-year fixed rate deals, and now there are 54 more products available in the five-year fixed rate bracket.
Similar is the case with the 80 percent LTV, with the number of two-year fixed rate products increasing by 26 and 20 further options available for those looking for a five-year fixed rate.
The Bank of England base rate currently remains at its lowest ever level of 0.10 percent, resulting in further despair for savers. However, those looking to invest their money in property now that the mortgage market has reopened may feel now is a good time to explore their options, particularly with rates becoming more competitive and product choice beginning to return this month, explains Moneyfacts’ finance expert, Eleanor Williams.
This positive growth in choice is reflected in the higher LTV tiers, with deals for landlords with just a 25 or 20 percent deposit or equity keeping pace across two and five-year fixed rate options, she continues.
Eleanor says this is encouraging considering that early in the Covid-19 crisis, providers were focused on supporting existing customers and restrictions meant that physical valuations were not feasible, seeing many lenders reduce their offerings to lower risk, lower loan to value products. These developments left those with less equity or deposit un-catered for.
As we begin to see indications that the buy-to-let market may be starting to recover, the full economic impact of the current crisis is still not yet clear for tenants and landlords alike. However, those who are in a position to consider capitalising on possible falls in house prices to expand their property portfolios or, indeed, those looking to switch their current deal, may wish to move quickly, she says.