There are now 280 more buy-to-let mortgages available on the market in June than there were at the start of May, new figures from Moneyfacts show.
On 1 May there were 1,455 products on the market, and on 1 June, 1,735.
Moneyfacts notes that there were increases across the board at higher LTVs. At 75 per cent LTV, the five-year fix count moved from 176 to 230, and at 80 per cent LTV, from 6 to 26.
Two-year fixes at 75 per cent LTV, meanwhile, went up from 165 to 211 in number, and at 80 per cent LTV, from 9 to 35.
May saw downward pressure on rates at these LTV brackets, too: from May to June the average 80 per cent LTV two-year fix moved from 3.61 per cent to 3.12 per cent and for 80 per cent LTV five year fixes, from 4.32 per cent to 3.65 per cent.
Rates grew elsewhere – at 75 per cent LTV the average two-year fix increased from 2.60 per cent to 2.64 per cent and at 75 per cent the average five-year fix grew from 3.15 per cent to 3.17 per cent.
Moneyfacts finance expert Eleanor Williams says: “A recent survey from Rightmove, which was conducted as the property market reopened at the end of May 2020, revealed that demand from tenants for rental properties increased by 33 per cent when compared to the same time period last year. Therefore, the increase in buy-to-let product choice will be welcome news to landlords.
“This positive growth in choice is reflected in the higher LTV tiers… this is encouraging considering that early in the Covid-19 crisis, providers were focused on supporting existing customers and restrictions meant that physical valuations were not feasible, seeing many lenders reduce their offerings to lower risk, lower LTV products. These developments left those with less equity or deposit not catered for.
“As we begin to see indications that the BTL market may be starting to recover, the full economic impact of the current crisis is still not yet clear for tenants and landlords alike. However, those who are in a position to consider capitalising on possible falls in house prices to expand their property portfolios or indeed those looking to switch their current deal, may wish to move quickly.”
