The number of buy-to-let (BTL) products has fallen by 82% in the last five years and there are now just 411 products available for landlord borrowers, according to Business Moneyfacts. The company also say that average fixed rate deals for BTL lending are down by as much as 1.00% compared to 2007 when the average rate was over 6%.
Prime product availability (deals on offer)
Average
variable rate
Average
fixed rate
Today
411
4.53%
5.03%
1 Year Ago
459
4.40%
5.16%
3 Years Ago
191
4.88%
5.80%
5 Years Ago
2265
6.23%
6.03%
Rachel Springall , spokesperson for Business Moneyfacts, said: “As interest rates have fallen for buy-to-let deals, product availability and therefore choice has also dropped a staggering 82% in five years.
“Lenders withdrew many buy-to-let mortgage deals as they were seen as a significant area of risk during the credit crisis. However due to the larger deposits required for first-time buyers as well as the strict credit checks, many more people are opting to rent.
“This demand for rental properties has increased competition in the buy-to-let market, and the continuation of falling interest rates will be welcome news to prospective landlords.
“To date the competition has been focused around the price of a few products rather than a wide selection of products, which allow for other considerations, such as service and additional benefits.”