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Buy-to-let product choice starts to recover

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert 01603 476210 Email Rachel
29/11/2022

Buy-to-let product choice starts to recover

Landlords will find product choice within the buy-to-let sector is starting to recover, according to the latest analysis by Moneyfacts.co.uk.

Buy-to-let product choice starts to recover

Landlords will find product choice within the buy-to-let sector is starting to recover, according to the latest analysis by Moneyfacts.co.uk.

  • Overall buy-to-let product availability (fixed and variable) has risen by over 700 options since the start of October 2022 (988). There are however, around 300 less deals than at the start of September 2022 (2,075).
  • Average fixed rates rose over the same period, both over a two-year or five-year fixed term.

 

  • Overall buy-to-let product availability (fixed and variable) has risen by over 700 options since the start of October 2022 (988). There are however, around 300 less deals than at the start of September 2022 (2,075).
  • Average fixed rates rose over the same period, both over a two-year or five-year fixed term.

 

Buy-to-let market analysis

Product numbers

1-Oct-22

25-Nov-22

Difference

BTL product count (fixed and variable)

988

1769

781

Two-year fixed rate BTL all LTV’s

183

442

259

Two-year fixed rate BTL at 60% LTV’s

35

72

37

Two-year fixed rate BTL at 75% LTV’s

84

223

139

Five-year fixed rate BTL all LTV’s

375

632

257

Five-year fixed rate BTL at 60% LTV’s

36

82

46

Five-year fixed rate BTL at 75% LTV’s

197

327

130

Average rates

1-Oct-22

25-Nov-22

Difference

Two-year fixed rate BTL all LTV’s

5.57%

6.50%

0.93%

Two-year fixed rate BTL at 60% LTV

4.52%

6.27%

1.75%

Two-year fixed rate BTL at 75% LTV

5.41%

6.53%

1.12%

Five-year fixed rate BTL all LTV’s

6.05%

6.42%

0.37%

Five-year fixed rate BTL at 60% LTV

4.26%

5.94%

1.68%

Five-year fixed rate BTL at 75% LTV

6.04%

6.55%

0.51%

Source: Moneyfacts.co.uk

Buy-to-let market analysis

Product numbers

1-Oct-22

25-Nov-22

Difference

BTL product count (fixed and variable)

988

1769

781

Two-year fixed rate BTL all LTV’s

183

442

259

Two-year fixed rate BTL at 60% LTV’s

35

72

37

Two-year fixed rate BTL at 75% LTV’s

84

223

139

Five-year fixed rate BTL all LTV’s

375

632

257

Five-year fixed rate BTL at 60% LTV’s

36

82

46

Five-year fixed rate BTL at 75% LTV’s

197

327

130

Average rates

1-Oct-22

25-Nov-22

Difference

Two-year fixed rate BTL all LTV’s

5.57%

6.50%

0.93%

Two-year fixed rate BTL at 60% LTV

4.52%

6.27%

1.75%

Two-year fixed rate BTL at 75% LTV

5.41%

6.53%

1.12%

Five-year fixed rate BTL all LTV’s

6.05%

6.42%

0.37%

Five-year fixed rate BTL at 60% LTV

4.26%

5.94%

1.68%

Five-year fixed rate BTL at 75% LTV

6.04%

6.55%

0.51%

Source: Moneyfacts.co.uk

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“The buy-to-let sector has faced notable market turmoil, so it’s positive to see product choice gradually returning since the start of last month. A rise in choice could indicate an encouraging sentiment across lenders that appear to be adjusting their ranges to cater to landlords searching for a new deal.

“The cost for locking into a new fixed deal has risen since the start of October, and the overall average buy-to-let fixed rates across both two- and five-year terms sit above 6%. So, despite product choice starting to return, landlords will be paying higher interest rates than if they secured a deal just eight weeks ago. There are high expectations that interest rates will come down in the weeks ahead, so it would not be too surprising if landlords wait a little longer before they refinance, particularly as we approach the end of the year.

“Prospective landlords assessing the potential returns by investing in buy-to-let may be concerned about their profit margins due to rising interest rates and the cost of living. Any investor will need to carefully balance their rental expectations amid rising costs as it is difficult to tell how investors could be impacted moving into 2023. However, since January 2020, rents have risen 19% across Great Britain, equating to an extra £2,351 a year for tenants, according to a study by Hamptons. It’s essential any potential borrower seeks independent financial advice before entering any arrangement to ensure it’s the right choice for them.”

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“The buy-to-let sector has faced notable market turmoil, so it’s positive to see product choice gradually returning since the start of last month. A rise in choice could indicate an encouraging sentiment across lenders that appear to be adjusting their ranges to cater to landlords searching for a new deal.

“The cost for locking into a new fixed deal has risen since the start of October, and the overall average buy-to-let fixed rates across both two- and five-year terms sit above 6%. So, despite product choice starting to return, landlords will be paying higher interest rates than if they secured a deal just eight weeks ago. There are high expectations that interest rates will come down in the weeks ahead, so it would not be too surprising if landlords wait a little longer before they refinance, particularly as we approach the end of the year.

“Prospective landlords assessing the potential returns by investing in buy-to-let may be concerned about their profit margins due to rising interest rates and the cost of living. Any investor will need to carefully balance their rental expectations amid rising costs as it is difficult to tell how investors could be impacted moving into 2023. However, since January 2020, rents have risen 19% across Great Britain, equating to an extra £2,351 a year for tenants, according to a study by Hamptons. It’s essential any potential borrower seeks independent financial advice before entering any arrangement to ensure it’s the right choice for them.”

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

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Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant