The number of products available to buy-to-let investors in the mortgage market has reached its highest level since before the mini-Budget in September last year according to property website, Zoopla.
The number of mortgage deals available to buy-to-let investors has increased to offer a total of 2,400 different deals in March 2023 – the highest number of products available since before the mini-Budget delivered by Kwasi Kwarteng in September 2022.
As the mortgage market continues to recover post mini-Budget, the number of buy-to-let mortgages available has reached a high of 2,400, a level last seen in July 2022, according to data released by financial information group, Moneyfacts.co.uk, as the average interest rates charged on a fixed rate buy-to-let mortgage have also fallen significantly.
The typical cost of a fixed rate buy-to-let mortgage for two years has now decreased to 5.81% while interest on the same product for five years has dropped to 5.72%.
“It is encouraging to see buy-to-let product choice gradually recover from the shock surrounding the fiscal announcement.” Rachel Springall, Finance Expert at Moneyfacts.co.uk.
Following Kwasi Kwarteng’s mini-Budget in September last year, many lenders pulled their deals and products in order to reprice them to compensate for the rates lenders needed to pay in order to borrow money from the banks. As a result, these products have gradually come back onto the market over the last six months with reduced interest rates, making them more affordable for buy-to-let investors.
Mortgage lenders have already begun to undercut one another according to Mortgagesolutions.co.uk, with this behaviour expected to continue as the UK price inflation continues to fall for the third month in a row to 10.1%, compared to 10.5% in December 2022.
While monetary policy will be continually used to control the rate of inflation in the UK, it is expected that once inflationary pressure begins to ease and the high interest rates in the market start to impact economic growth, interest rates will decline – making purchasing a buy-to-let mortgage product even more affordable for investors in the market.
To learn more about the mortgage products available to buy-to-let investors and understand how you can benefit from the decline in interest rates, speak to our expert team of property consultants by calling +44 (0) 161 791 4600 or requesting a call back today.