BTL Products Hit Highest Choice for a Decade

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With new buy to let (BTL) finance products being launched all the time, the number of BTL products has reached its highest level for a decade.

Not since before the global financial crisis in 2007 has there been so much choice of buy to let products available on the market.

The current number of two-year BTL products is 2,396, this is up 21 per cent year-on-year, and the number has increased by 143 products on a monthly basis.

In addition to the two-year loans, the present quantity of five-year BTL products is 785, up 23 per cent on a yearly basis, and has increased by 55 products month-on-month as property investors look to fix their payments for longer periods.

The average two-year BTL mortgage rate has also increased, rising from 2.88 per cent to 3.05 per cent in the year to June 2019. The average five-year fixed rate BTL Product has also increased, from 3.43 per cent in June 2018, rising to 3.54 per cent as of June 2019.

Moneyfacts finance expert Darren Cook says: ‘The BTL market has experienced a number of regulatory changes during recent years, however, it seems that product competition within this specialised mortgage area is continuing to grow.’

Mr Cook went on to say that ‘providers are keen to offer potential buy to let investors plenty of choice within the sector’.

He continued: ‘The increase in the BTL average rates contrasts with the downward trajectory of their residential mortgage counterparts, where product competition seems to have instead resulted in rates falling.

‘This disparity in trends is likely to be attributed to the different approach lenders take to risk between these two sectors, and that economic uncertainty may be having a more adverse influence on the BTL mortgage market than it is having on the residential mortgage market.’