The specialist lender says the number of buy-to-let mortgage products on offer has slumped by 51.1% over the past year to 1,595 last month, from 3,264 in November 2021.  

It adds that BTL five-year fixed-rate mortgages have climbed from 1.39% to 4.89%, meaning that average monthly full payments have lifted by 60.9%, while interest-only payments are up by 286.4%.  

The lender says: “The debate around rising mortgage rates has so far been centred around the strife facing homeowners and families, but it’s also had an impact on buy-to-let landlords, to the detriment of renters nationwide.”  

The research comes after chancellor Jeremy Hunt calmed international debt markets in October, by largely reversing former chancellor Kwasi Kwarteng’s tax-cutting mini-budget on 23 September, which saw the number of products on the market fall sharply while remaining loan prices jumped. Hunt went on to consolidate his measures in the Autumn Statement last month.    

Also, on 3 November, the central bank increased the base rate by 75bps to 3%, the biggest since 1989 and the eighth time in a row it has lifted rates. Last year in November the base rate was 0.1%.    

The firm says the average rate currently offered on all BTL products has increased by 2.1% in the past year to sit at an average of 3.09%.  

As a result, the average monthly repayment for landlords has climbed to £917 from £656, an increase of 39.7%.  

Looking at interest-only mortgages, the average monthly payment has jumped by 242.8% to £493 per month, with five-year terms higher still.  

Octane Capital chief executive Jonathan Samuels says: “The reduction in product choice for BTL mortgages has been influenced largely by a consistent string of Bank of England interest rate hikes which has led to many lenders pulling their BTL range.   

He adds: “However, with stability gradually returning to the market, we fully expect 2023 to bring with it a far more settled market for landlords and BTL investors.”