You are here: Home - News -

BTL product availability up 32% despite regulatory changes

  • 23/01/2018
  • 0
BTL product availability up 32% despite regulatory changes
The UK mortgage market saw an additional 2,007 products introduced in 2017, representing a 24% jump in availability, according to Mortgage Brain.


However, despite seeing a raft of regulatory changes throughout 2017, the same data showed that buy-to-let (BTL) mortgage products saw the strongest growth out of all the sectors, jumping by 32% to a record high of 2,959 as of 15 January 2018.

Charlotte Nelson, finance expert at Moneyfacts, says this trend of growing BTL product numbers is due to lenders having to diversify their offerings to accommodate landlords’ changing needs, and stand out in a competitive market.

“With all the changes that have happened, it’s caused providers to rethink what they offer,” said Nelson.

“Whereas previously one or two products could’ve satisfied [landlords], now perhaps lenders have to offer limited company options, and higher LTVs as well.

“It boils down to having a low rate environment – prices have got so low that lenders have to compete in other areas, such as removing product fees or giving cashback options.

“They have to offer a diverse range of products just to stand out from the crowd.”

With more lenders entering the market as well as a more diverse product range, Nelson says that consumers stand to benefit.

“It’s a good thing for borrowers – because they get to look at the whole of market, they can almost tailor the mortgage to fit their needs,” said Nelson.

She added: “It means they have to look through a vast array of products to find a good deal, but there are advisers for that if they’re unsure.”


Healthier place

Mortgage Brain’s first and second charge sourcing systems now list a total of 10,380 mainstream mortgage products, up from 8,373 in January 2017.

The data showed that 60%+ loan to value (LTV) products saw a big increase over the year, growing by 22% over the 12-month period, and currently accounts for 8,407 of all mainstream products available.

For products with 70%+ LTVs, an additional 1,090 products were added over the year – showing a 21% increase – there are now 6,364 products in this category available to advisers.

Mark Lofthouse, chief executive officer of Mortgage Brain, said: “While our latest data continues to show strong movement in product numbers over the past 12 months, our short term analysis is showing that product availability could be stabilising with less movement seen in the number of additional products for most types during the last quarter of 2017.

“There’s no doubt, however, that the market is in a much healthier place for all concerned in terms of product choice and availability when compared to the past two to three years.

“We’ll just have to wait to see what 2018 will have in store for us.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • My week on Twitter 🎉: 104 Mentions, 47.7K Mention Reach, 66 Likes, 50 Retweets, 41.6K Retweet Reach. See yours with…
  • Our first day of the Mortgage Administrator iVent has been a great success – don’t forget to join us again tomorrow…
  • Mortgage Administrator iVENT 2018: How to spot mortgage fraud -
  • RT @DanielleDennis9: Our first ever virtual event is looking great! Make sure you log in today, take a look around the stands and watch the…
Read previous post:
Kris Brewster from Skipton
Skipton cuts buy-to-let and residential mortgage rates

Skipton Building Society has trimmed rates across its buy-to-let and five-year fixed-rate residential ranges as part of a product refresh.