You are here: Home - News -

Buy-to-let market opens up to first-time landlords – Moneyfacts

by:
  • 23/02/2021
  • 0
Buy-to-let market opens up to first-time landlords – Moneyfacts
More buy-to-let mortgages are available to first-time landlords, but rates for these investors have increased faster than the wider market, analysis has showed.

 

Around 65 per cent of buy-to-let mortgage deals – or 1,311 products – are accessible to novice investors, according to Moneyfacts.

A year ago, around 61 per cent of the market was catering to first-time landlords.

However, two-year fixed rates for first-time landlords have risen 0.30 per cent year on year to 3.10 per cent, while five-year deals are up by 0.35 per cent to 3.66 per cent.

The increases are steeper than the wider market, signalling that lenders are pricing risk into these deals.

Eleanor Williams, from Moneyfacts.co.uk, said: “Factors such as house price inflation, rock-bottom savings rates (making building deposits difficult), and uncertainty in job stability and income levels may play a part in a number of potential first-time residential buyers opting instead for the less onerous commitment of staying in privately rented properties.

“Furthermore, the BTL sector as a whole has shown itself to be relatively resilient and robust in the face of an unprecedented year, and therefore there may now be those who are considering capitalising on the opportunity to invest in the sector for the first time.

“Overall availability contracted sharply last year, which makes it even more positive to note that at 65 per cent, the proportion of the market that is available to FTLs has grown by 4 per cent year-on-year, meaning that would-be investors have plenty of choice, and is also an indication that providers are committed to servicing this demographic of borrowers.”

There are 0 Comment(s)

You may also be interested in

Privacy Preference Center