Landlords urged to expand their buy-to-let portfolios

With the outlook for landlords looking for mortgages having been significantly improved in recent weeks, investors are being urged to expand their portfolios sooner rather than later.

Data points to positive growth in the buy-to-let mortgage sector, with landlords having a similar amount of choice of mortgages available to them as pre-COVID-19 levels. From May 2020 to June 2020, the number of BTL products increased by 280. Landlords now have 1,735 products to choose from, up from 1,455.

The surge in BTL products on the market is linked to lenders amending their focus to accommodate for new borrowers as well as existing ones. The rise in products is also associated with restrictions being lifted on physical mortgage valuations.  In May 2020, mortgage lenders started “firing on all cylinders” when physical mortgage valuations were given the green light.

Interest rates have fallen on many higher loan-to-value (LTV) products. The greater choice of BTL mortgages and falling interest rates on higher LTV products is a positive outlook following months of restrictions on higher LTV products by many lenders during the height of the COVID-19 pandemic.

From May to June, landlords looking to secure fixed mortgage terms with 80% LTV could benefit from an average 0.67% reduction in the cost of the mortgage, down to 3.65% to 4.32%.

In light of the favourable buy-to-let mortgage environment, landlords are being urged to take advantage and act quickly by expanding their portfolio of investments or by taking on a new mortgage.

Adding further positivity to the buy-to-let market is that demand for rental properties is on the rise, increased by 33% in May 2020 compared to May 2019.

If you are thinking about taking advantage of the rosy outlook for landlords, buying at property auction can be a great way to secure a great BTL investment. Check out the lots we have confirmed for our next property auction.