The number of buy-to-let products available on the market has dropped substantially since the pre-Covid lockdown while rates have risen across all LTV bands, according to Moneyfacts.
BTL product numbers fell to 1,792 at the end of November, down from 2,897 in March. There was a slight lift in October but November saw product numbers dip again.
The 80 per cent LTV products have seen the biggest fall with just 74 products as November closed compared to 368 in March.
Average BTL rates had fallen in March compared with November 2019 and fell again across most LTV bands in July but since then rates have steadily risen.
The average two-year fix at 80 per cent LTV has increased the most from 3.56 per cent in March to 4.16 per cent at the end of November
Five-year fixes also rose most in the 80 per cent LTV band from 3.98% in March to 4.34 per cent at November-end.
Even at the lower 60 per cent LTV end, two-year fixed rates are up from 1.89 per cent to 2.56 per cent and five-year fixes rose from 2.31 per cent to 2.86 per cent in March and November respectively.
Moneyfacts finance expert Eleanor Williams says: “After dropping to 1,455 products available to landlords in May, the earlier resilience and increase in product choice in the BTL 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 per cent contraction in the market when compared to March, before the onset of the pandemic.
“According to our data, 80 per cent is currently the highest LTV available to landlords since the handful of 85 per cent LTV deals that had come back to market were withdrawn in mid-October.
“Landlords who are considering investing or refinancing their BTL 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.”
