Product choice within the buy-to-let sector is starting to recover, according to new analysis.
The number of buy-to-let (BTL) products (both fixed and variable) has risen by over 700 to 1769 since the start of October 2022 when availability had fallen to 988.
As of 25 November, there were 442 two-year fixed rate BTL mortgage products available, which is up 259 on the products available on 1 October (183), however, rates are on average 0.93 per cent higher across all two-year deals, while 60 per cent and 70 per cent loan-to-value (LTV) deals cost 1.75 and 1.12 per cent more respectively.
The five-year fixed rate products have also risen by a similar amount (257) since 1 October, with rates up by 0.37 per cent, while 60 per cent and 70 per cent loan-to-value (LTV) deals cost 1.68 and 0.5 per cent more respectively.
Overall, there are still around 300 fewer products than at the start of September 2022 when there were 2,075 available deals.
Rachel Springall, Finance Expert at financial product price comparison site Moneyfacts.co.uk, explains: “The buy-to-let sector has faced notable market turmoil, so it’s positive to see product choice gradually returning since the start of last month. A rise in choice could indicate an encouraging sentiment across lenders that appear to be adjusting their ranges to cater to landlords searching for a new deal.
“The cost for locking into a new fixed deal has risen since the start of October, and the overall average buy-to-let fixed rates across both two- and five-year terms sit above 6%. So, despite product choice starting to return, landlords will be paying higher interest rates than if they secured a deal just eight weeks ago.”
However, there are indications that interest rates will come down in the weeks ahead, meaning landlords may want to wait a little longer before they refinance.