The number of mortgage products available for first-time buy-to-let (BTL) investors has increased by 13%, to a record high. This was the finding by research compiled by Moneyfacts, which found there are 1,268 buy-to-let products now available in the UK to first-time landlords.
The figure marks an increase in 339 buy-to-let products available in just two years, to those purchasing rental investments for the first time.
The Moneyfacts data shows that in July 2016, the number of first-time landlord products was 929. In July 2018, this figure stands at 1,268.
A fall in BTL interest rates
Alongside the rise in the number of products available, has been a fall in the interest rates in BTL mortgages during the last two years. For instance, the average two-year fixed rate for first-time landlords in July 2016 was 3.19%. The same product is now a significantly lower 2.83%.
Charlotte Nelson, a financial expert, commented on the buoyant outlook for first-time landlords needing to take out a mortgage to fund their property investment.
“Not only do first-time landlords have more choice, but they have also seen rates fall by 0.36% over the same period.”
Additional research from Accord shows that the number of first-time buy-to-let investors has doubled in the past 12 months, despite tax changes that are inherently unwelcome to landlords.
With interest rates dropping on buy-to-let products and the choice in BTL mortgages for landlords now bigger than ever, there is plenty of incentive for people to invest in bricks and mortar and enjoy a profitable income from buy-to-let.
If you are thinking about joining Britain’s burgeoning buy-to-let sector or are wanting to increase your portfolio of rental properties, Auction House London’s property auctions could be the perfect place to find your first or next buy-to-let investment.
12pm on the 9th May 2019
London Marriott Hotel Regents Park, 128 King Henry's Rd, London NW3 3ST