Data from Mortgage Broker Tools (MBT) found that just 10 per cent of buy-to-let enquiries made through its platform were found to be unaffordable. The firm attributed this change to lenders lowering rates and making stress testing more favourable.
By contrast, in November last year, 19 per cent of buy-to-let enquiries failed to find any lenders which would provide the desired loan amount.
January also saw a record monthly number of enquiries for buy-to-let mortgages, particularly across first-time landlords and investors looking for variable rate deals.
The lender offering the best affordability was The Mortgage Works, which came out as the top option for borrowers on 11 per cent of all searches.
Tanya Toumadj (pictured), CEO at Mortgage Broker Tools, said: “The last quarter of 2022 was a tough time for buy-to-let investors, as rate rises significantly impacted stress tests and the loan sizes available contracted considerably.
“However, buy-to-let has bounced back and the situation has improved quickly. Competition has returned to the market, lenders are now starting to cut rates and many are offering more achievable stress testing.”
Toumadj said the demand for buy-to-let mortgages suggested the outlook was brighter than it was a few months ago.
She added: “Buy-to-let clients do still face challenges, however, and so it’s vital that brokers have access to research software that enables them to quickly and easily assess the options available to their clients.”
