According to Moneyfacts, total buy-to-let fixed and variable product count in October was 988, but as of 25 November stood at 1,769. This is a jump of almost 80 per cent in one month.
However, this time last year there were around 2,075 products so availability is still 15 per cent down on last year.
Two-year fixed rates across all loan to value tiers rose by 259 products between October and November to 442.
Five-year fixed rates across all LTV tiers increased by 257 to 632 deals in the same period.
Average rates have also risen substantially, standing at 6.5 per cent in November, up 0.93 per cent from October.
Two-year fixed rate pricing in October came to 4.52 per cent, but leapt to 6.27 per cent in November.
Five-year fixed rate pricing in October came to 6.05 per cent and increased to 6.42 per cent one month later.
Rachel Springall, finance expert at Moneyfacts, said that the buy-to-let sector had “faced notable market turmoil” so it was “positive” to see product choice beginning to return.
She said this could show “encouraging sentiment” that lenders could be adjusting products to cater for landlords looking for a deal.
Springall continued that the cost of a new deal had risen, with two and five-year fixed rate deals both above six per cent.
“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,” she explained.
Springall added that prospective landlords looking at the buy-to-let sector could be concerned about profit margin due to rising interest rates and cost of living.
She noted: “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 per cent 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.”
