Number of BTL mortgages reach record levels

The number of buy-to-let (BTL) mortgages available to landlords in the UK has reached the highest level since the financial crisis of 2008.

Figures released by the data provider Moneyfacts show that there are currently 2,162 BTL mortgage deals on offer.

This is a significant increase from the same time last year when there were 1,765 BTL mortgage products available.

The steep rise in BTL mortgages being offered by lenders is the highest the market has seen since prior to the credit crunch when, in October 2007, there were 3,305 BTL loans available.

Moneyfacts’ Darren Cook spoke of the abundant choice today’s landlords have when it comes to borrowing money to make property investments.

“Buy-to-let landlords have more mortgage choice than they have had at any time in almost 12 years.”

In an attempt to offset some of the angst caused by the legislation changes landlords have been faced with in recent years, lenders have been offering attractively low-interest BTL mortgages for lengthy fixed-rate terms.

In September 2018, for example, TSB decreased their BTL mortgage interest rate by 0.10% to 2.39% on a 60% loan to value mortgage.

Barclays recently reduced rates on BTL purchases and re-mortgages and NatWest removed previous restrictions on lending to landlords with tenants who are on housing benefit.

Kevin Roberts of the Legal & General Mortgage Club spoke of the current positive outlook for UK landlords.

“The buy-to-let sector has undoubtedly faced a challenging few years, with changes to regulation and taxation, but it’s not all doom and gloom.

“There is still plenty of opportunity to lock into the current low rates.”

Confident landlords are also expanding their property portfolios, buying property other than small houses and flats.

As Roberts notes:

“We’re also seeing more landlords diversifying their portfolios and looking to houses in multiple occupancy for increasing yields. Holiday buy-to-let is another area in which we’re seeing growth.”

If you are thinking about investing in buy-to-let property and taking advantage of the large amount of choice available when looking for the right BTL mortgage, take a look at the current lots in our forthcoming property auction for your ideal property investment in London, the south east and further afield.