The buy-to-let sector is beginning to stage a recovery as the mortgage market has expanded by +70% since it hit its lowest point in September 2009, according to Moneyfacts.

The buy-to-let market had fallen by -95% when compared to its peak in August 2007, however since September 2009 product numbers have been rising and in the week beginning 10th May 2010 they went from 179 to 304 products, with a number of them having a high loan-to-value (LTV) rate.

Darren Cook, spokesperson for Moneyfacts, said: "Competition has returned to the market, as lenders actively 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."

In September 2009 products with a maximum LTV of 80% comprised just 1.40% of the entire market, however this has increased to 4.24%, with 75% and 70% LTV products now making up 29.07% and 25.82% of the sector respectively.
The average two-year fixed buy-to-let mortgage rate has fallen over the same period down to 5.66% from 5.96%, with two year trackers falling from 4.59% to 4.49%.