Buy-to-let product choice halved and rates nearly tripled over past year – Octane Capital

According to research from Octane Capital, buy-to-let products have fallen by over half over the past year, from 3,264 in November last year to 1,595 in November this year.

The average buy-to-let rate has also increased by 2.1 per cent over 12 months to an average of 3.09 per cent.

Consequently, the average monthly repayment for landlords has risen from £656 to £917 currently. This represents a near 40 per cent increase.

Specifically, five-year fixed rates have climbed from 1.39 per cent to 4.89 per cent, with average monthly payments increasing by around 61 per cent.

Interest-only mortgages have more than tripled to a high of £493 per month.

Octane Capital’s CEO Jonathan Samuels said: “The reduction in product choice for buy-to-let mortgages has been influenced largely by a consistent string of Bank of England interest rate hikes which has led to many lenders pulling their buy-to-let range.

“However, with stability gradually returning to the market, we fully expect 2023 to bring with it a far more settled market for landlords and buy-to-let investors.”

He added: “At Octane Capital, we have already set plans in motion with a view of increasing our buy-to-let offering in the new year and as a greater level of choice returns, the nation’s landlords will be able to better negotiate the landscape when borrowing.”