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Buy-to-let product count on the up

The number of available buy-to-let products has risen by 8.8% in the past three months alone, signalling that more lenders are competing for landlords’ business.

As it stands investors have 1,889 products to choose from, research from lender Octane Capital shows.

This trend contrasts with the residential space, where the number of products has fallen by -3.4% in the past three months.

Jonathan Samuels, chief executive of Octane Capital, said: “Generally speaking, there has been a growing level of buyer confidence since the Bank of England held the base rate for a third consecutive time in December.

“That said, while the general expectation is that interest rates will fall this year, many lenders are continuing to tread with caution and this is why we’ve seen a reduction in the number of mortgage products available to both first-time buyers and home movers.

“This is because those looking to buy for the first time, or borrow more to move further up the ladder, are often more susceptible to the potential affordability issues caused by higher mortgage rates.

“However, this reduction in product availability hasn’t been seen across the entire sector and buy-to-let investors, in particular, are currently benefiting from an increased level of choice when borrowing.”

First-time buyers face the toughest challenge securing a mortgage in the current market, as there are just 595 mortgage products currently available to first-time buyers, accounting for just 7% of total mortgage products on the market.

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