Data out today from Moneyfacts.co.uk revealed the number of mortgage deals for landlords has fallen from 1,825 in October to 1,792 on 27 November. When compared to this time last year there are 819 fewer buy-to-let deals on the market.
And, when it comes to rates, the average two-year fixed deal for all loan-to-value (LTV) tiers it would appear there has been an increase. These mortgages are now typically bearing rates of 2.90% which is 0.13% higher than in March before the onset of Coronavirus.
However, Moneyfacts pointed out this is still 0.06% lower than the average two-year fixed rate buy-to-let mortgage in November 2019.
The five-year fixed rate deals, at an average of 3.26%, are just 0.02% higher than March and 0.14% less than in November last year.
Record level of tenants
The data comes as research from Arla Propertymark, the professional body for letting agents, revealed demand in this sector was high with prospective new tenants reaching record levels in October.
Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “After dropping to 1,455 products available to landlords in May, the earlier resilience and increase in product choice in the buy-to-let market seems to have taken a small hit recently, with product numbers now lower than the 1,825 our records show as on offer in October.
“With 1,792 deals now available, we have however seen an increase of 20 products come to market since the start of November, but current totals still represent a 38% contraction in the market when compared to March, before the onset of the pandemic.”
| Buy-to-let mortgage market analysis (Source: Moneyfacts.co.uk) | ||||||
| Product numbers | Nov-19 | Mar-20 | Jul-20 | Oct-20 | Nov-20 | 27.11.20 |
| BTL product count – fixed and variable rates | 2,611 | 2,897 | 1,738 | 1,825 | 1,772 | 1,792 |
| All 80% LTV BTL products – fixed and variable rates | 282 | 368 | 77 | 128 | 99 | 74 |
| All 75% LTV BTL products – fixed and variable rates | 1,032 | 1,080 | 616 | 566 | 586 | 618 |
| All 60% LTV BTL products – fixed and variable rates | 360 | 373 | 414 | 353 | 309 | 314 |
| Average rates | Nov-19 | Mar-20 | Jul-20 | Oct-20 | Nov-20 | 27.11.20 |
| BTL two-year fixed – all LTVs | 2.96% | 2.77% | 2.61% | 2.85% | 2.89% | 2.90% |
| BTL two-year fixed – 80% LTV | 3.62% | 3.56% | 3.18% | 3.97% | 4.07% | 4.16% |
| BTL two-year fixed – 75% LTV | 2.93% | 2.80% | 2.72% | 2.84% | 2.92% | 2.98% |
| BTL two-year fixed – 60% LTV | 1.96% | 1.89% | 2.28% | 2.52% | 2.53% | 2.56% |
| BTL five-year fixed – all LTVs | 3.40% | 3.24% | 2.97% | 3.22% | 3.28% | 3.26% |
| BTL five-year fixed – 80% LTV | 4.01% | 3.98% | 3.82% | 4.27% | 4.55% | 4.34% |
| BTL five-year fixed – 75% LTV | 3.43% | 3.33% | 3.14% | 3.24% | 3.33% | 3.38% |
| BTL five-year fixed – 60% LTV | 2.37% | 2.31% | 2.65% | 2.90% | 2.83% | 2.86% |
| Data shown is as at first working day of month, unless otherwise stated. | ||||||
| Source: Moneyfacts.co.uk | ||||||
LTV availability
Moneyfact’s data revealed 80% was currently the highest LTV available to landlords since a handful of 85% LTV deals, which had come back to market, were withdrawn in mid-October.
Meanwhile the choice of products in the 80% LTV tier has shrunk by 25 deals since the start of November, with 74 now on offer.
This, said Moneyfacts, had resulted in less choice for those landlords with lower levels of equity or deposit.
Williams added: “Landlords who are considering investing or refinancing their buy-to-let properties may wish to explore their options soon – both in order to capitalise on the possible savings available via the stamp duty holiday before this expires at the end of March 2021, but also before rates potentially increase even further.”
