Buy-to-let mortgage product numbers have fallen by 1,304 compared to the start of March 2020, with 1,593 available today compared to 2,897.
Product choice for borrowers at 80% loan-to-value has plummeted on both two and five-year fixed deals by 122 and 134 products respectively; so there are less than 40 deals combined today in these sectors and average interest rates have subsequently risen as well.
Average rates on both two and five-year fixed rate buy-to-let products at 60% LTV rose by 0.35% and 0.31% respectively since last month.
| Buy-to-let market analysis | |||
| Product numbers | Mar-20 | Today | Difference |
| BTL product count (fixed and variable) | 2,897 | 1593 | -1,304 |
| Two-year fixed rate BTL all LTV’s | 914 | 507 | -407 |
| Two-year fixed rate BTL at 60% LTV’s | 124 | 129 | 5 |
| Two-year fixed rate BTL at 80% LTV’s | 141 | 19 | -122 |
| Five-year fixed rate BTL all LTV’s | 1,000 | 556 | -444 |
| Five-year fixed rate BTL at 60% LTV’s | 133 | 139 | 6 |
| Five-year fixed rate BTL at 80% LTV’s | 150 | 16 | -134 |
| Average rates | Mar-20 | Today | Difference |
| Two-year fixed rate BTL all LTV’s | 2.77% | 2.58% | -0.19% |
| Two-year fixed rate BTL at 60% LTV | 1.89% | 2.24% | 0.35% |
| Two-year fixed rate BTL at 80% LTV | 3.56% | 3.76% | 0.20% |
| Five-year fixed rate BTL all LTV’s | 3.24% | 2.98% | -0.26% |
| Five-year fixed rate BTL at 60% LTV | 2.31% | 2.62% | 0.31% |
| Five-year fixed rate BTL at 80% LTV | 3.98% | 4.19% | 0.21% |
| Source: Moneyfacts Treasury Reports | |||
Rachel Springall, finance expert at Moneyfacts, said: “It is clear as day to see how the virus pandemic and isolation rules have led to a huge shake-up in the choice and cost of buy-to-let mortgages.
“This couldn’t come at a worse time, as from this new tax year, mortgage interest tax relief has been completely phased out for buy-to-let landlords – which allowed them to deduct mortgage expenses from rental income to reduce a tax bill.
“The fall in choice and rise in interest rates will be a blow to landlords who are considering investing, however the market has moved in this way to protect providers’ existing books. Even if some believe the property market to be ripe to invest in, prospective borrowers who don’t have a decent deposit could well be discouraged.”
