The number of buy-to-let mortgages on the market has recovered to pre-pandemic levels by 81 per cent, says Moneyfacts. However, rates continue to grow, it adds.

As of this month, Moneyfacts has counted 2,333 BTL options versus 2,897 in March 2020. This 81 per cent recovery compares to a 68 per cent recovery in the residential sector.

In terms of rates, the average two-year fix across all LTVs in March 2020 was 2.77 per cent. Today, that rate is 3.05 per cent – a 28 basis points difference – which is the highest seen since June 2019.

In February 2021 the rate came in at 2.97 per cent.

The average five-year fix across all LTVs has meanwhile increased from 3.24 per cent in March 2020 to 3.41 per cent in March 2021, a rise of 17 basis points. In February 2021 this rate was recorded at 3.32 per cent.

Of all the LTV categories looked at, the highest relative jump between March 2020 and March 2021 is a two-year fix at 80 per cent LTV, where an increase from an average rate of 3.56 per cent in March 2020 has since moved to 4.14 per cent – a difference of 58 basis points. In February 2021, this rate was 3.97 per cent.

Moneyfacts finance expert Eleanor Williams says: “According to the Hamptons Letting Index, half of landlords reletting their property last year were able to increase the rent charged, perhaps fuelled by the fact that significantly fewer properties came onto the rental market last year; both factors that may fuel some of the optimism this resilient sector has shown. It is therefore inherently positive to see further recovery in the number of available products.

“As the level of product choice has returned, rates have also continued to climb, with both the average two- and five-year fixed rates for all LTVs higher than the same rates year-on-year.

“The only LTV tier where average fixed rates did not increase this month was at 60 per cent LTV, where both the two- and five-year average fixed rates fell by 0.38 per cent and 0.27 per cent, respectively.

“It is important to note though that these are averages, and therefore while representative of the market as a whole, there are some very competitively priced products available, with some – depending on LTV and criteria – available at below 2 per cent. Therefore, those who are hoping to refinance or take on a new deal would do well to shop around.”