This time last year there were 45 active lenders in the BTL sector, today there are 54. The market has also seen lenders returning to the BTL sector including Paragon and Darlington Building Society.
The Mortgage Works (TMW) has brought out a new range today including a fixed-rate mortgage at 4.89% offered at 70% LTV with a 2.50% fee, and a first-time landlord two-year fixed rate mortgage at 4.89%, available at 70% LTV with the same fee.
Tracie Pearce, head of products for TMW said: “New products will help to improve the chance of first time landlords getting onto the buy-to-let market.”
Aldermore has also spruced up its range recently, with the addition of a two-year fixed rate offered at 5.69% for 2 years, at up to 75% LTV, with a fee of 2.25% of the mortgage advanced.
Moneyfacts reported the number of mortgages for landlords with a 20% deposit have increased threefold in the last year, after dwindling away to virtually nothing the year before.
Michelle Slade, spokesperson at Moneyfacts, said although the buy-to-let market has taken a big hit in the last few years, it has started to fight back.
She said: “Lenders are returning to the market, bringing much needed competition to the sector.
“Rental income and tenant demand continue to rise due to an increase in people opting or needing to rent rather than buy.”
Although she said affordability remained a key issue in this market for both landlords and lenders alike.
She said: “Rental income does not move with base rate and lenders are concerned that borrowers on variable rate deals may not be able to meet repayments when rates rise.
“Lenders are trying to deter landlords from taking a variable rate deal, preferring them to opt for a fixed rate deal instead to help keep the riskfactor at a minimum.”
“The buy-to-let market still has a long way to go, but the signs are there that it may have finally turned a corner.”
