The buy-to-let sector has seen fixed rates fall and product choice grow month-on-month, this is according to the latest analysis by Moneyfactscompare.co.uk.

Overall buy-to-let product availability (fixed and variable) has improved month-on-month by just over 100 deals. There are now over 2,500 options available, a year ago, there were less than 1,000 options.

Average fixed rates have fallen month-on-month, both over a two-year or five-year fixed term. Landlords coming off a five- or two-year fixed rate deal and looking to remortgage will find the latest average rates are around 3% higher.

Moneyfacts finance expert Rachel Springall comments: “The buy-to-let market has seen a healthy growth in product choice month-on-month and fixed rates have fallen over the same period.

These are encouraging signs for landlords looking to refinance who may have been concerned about rates escalating. However, those coming off a two- or five-year fixed rate deal will need to find more funds to afford higher mortgage repayments”.

The average buy-to-let rate on a two-year fixed mortgage in October 2021 was 2.92%; it has now more than doubled to 6.40% while the average rate on a five-year equivalent in October 2018 was 3.40%, and now stands at 6.32%.

Springall adds: “Borrowers with just a 20% deposit or equity will find average rates across two- and five-year fixed terms have dropped below 7% this month and choice in this niche area of the market has grown.

“Landlords who have a larger deposit or equity of 25%, and are prepared to lock into a five-year fixed mortgage, will find the average rate at 75% loan-to-value stands at its lowest point since June 2023 (5.85%). Product choice for a five-year fixed deal at 75% LTV stands at its highest point on record, with over 600 deals to choose from.”