Choice of buy-to-let mortgage deals reaches highest point on website’s records
Some average rates have crept up month-on-month, Moneyfactscompare.co.uk said.
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The choice of buy-to-let mortgage deals has reached its highest point since a financial information website’s records started in 2011.
Moneyfactscompare.co.uk counted 3,560 fixed and variable-rate deals at the start of February – the highest number since its electronic records started in November 2011.
The website collected data for the first available day of each month.
Moneyfacts counted 92 more five-year fixed-rate deals and 114 more two-year fixes than in January.
However, the average rates on offer increased month-on-month.
The average two-year fixed-rate for a buy-to-let mortgage rose to 5.40% in February, from 5.34% in January.
Average five-year buy-to-let fixed rates increased to 5.56% in February, from 5.45% in January.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “Landlords searching for a new deal will find the choice of buy-to-let mortgages has hit a record high, which could instil a sense of optimism.
“Views are mixed on how the buy-to-let market will fare this year but lenders are clearly working hard to attract new business, such as those launching new deals at higher loan-to-value ratios, and even deals created for a limited company.”
She added: “Thankfully, compared to 2023, buy-to-let mortgage rates are lower, across two- and five-year fixed terms. However, if someone locked into a cheap deal back in 2020, they will be in for a shock this year when they come to refinance.
“Landlords will hope rates come down this year, but sticky inflation can delay further base rate cuts, and the swap rate market remains unpredictable.
“Affordable housing remains in short supply, so demand for rental properties continues. However, rising costs are taking their toll on prospective landlords.”