Buy-to-Let Product Numbers and Options on the Rise
The number of buy-to-let products available on the market is reported to have risen to 2,396, the highest figure seen since the start of the financial crisis in October 2007 when the number of products stood at 3,305.
Recent data from Moneyfacts showed that since June 2018, the total number of available buy-to-let products has increased by 21 per cent, and in the past month alone it has risen by 143 products. Meanwhile, average buy-to-let mortgage rates have also risen over the past 12 months, with the average two-year fixed rate increasing by 0.17 per cent from 2.88 per cent in June 2018 to a current level of 3.05 per cent. The average five-year rate also rose by 0.11 per cent to 3.54 per cent. However, to maintain a little bit of perspective, rates do remain significantly lower than in October 2007 when the average two-year buy-to-let fixed rate stood at a whopping 6.36 per cent while its five-year counterpart stood at 6.39 per cent.
This data highlights heightened lending activity across the BTL sector, which is leading to increased choice across many product areas. A greater number of options are certainly emerging at the more specialist end of the BTL product range, and areas such as limited company offerings, HMOs and short-term lets are attracting the attention of a variety of landlords.
We believe the market will continue to head in this direction, and with so many products and product types now on offer, it’s more important than ever for landlords to seek the right kind of professional advice which will help them secure their portfolios and financial futures over the short, medium and longer term.