The importance of specialist buy-to-let support
The availability of buy-to-let mortgages is reported to have fallen in November with the market contracting by 38% since the period before the pandemic started in March.
The latest data from Moneyfacts.co.uk revealed that the number of mortgage deals for landlords has fallen from 1,825 in October to 1,792 on 27 November. When compared to this time last year there are 819 fewer buy-to-let deals on the market.
And, when it comes to rates, the average two-year fixed deal for all loan-to-value (LTV) tiers appear to have seen an increase. These mortgages are now typically bearing rates of 2.90% which is 0.13% higher than in March before the onset of Coronavirus. However, Moneyfacts pointed out this is still 0.06% lower than the average two-year fixed rate buy-to-let mortgage in November 2019. The five-year fixed rate deals, at an average of 3.26%, are just 0.02% higher than March and 0.14% less than in November last year.
The data comes as research from Arla Propertymark, the professional body for letting agents, revealed demand in this sector was high with prospective new tenants reaching record levels in October.
Although product numbers represent a relatively large contraction since the onset of the pandemic, there remains a good number of products out there which are available to a wide range of borrowers. And rates are highly competitive if you know where to look. The BTL market is also now a little more complex than it was, in terms of funding tranches, product types, policy, criteria and interest coverage ratios. A combination of factors which really does highlight just how important it is for landlords to seek specialist independent advice to ensure their current, and future, property-related needs are successfully being met.