According to the latest figures from UK Finance, the value of these loans came to £8.6bn, a jump of 8.9% in value on the same period in the previous year.
The average interest rate on new BTL loans was 5.22%, which is 0.03% higher than the prior quarter but 0.09% down on Q3 2023.
The report found that the average gross BTL rental yield in the UK during the period came to 6.93%, which compares to 6.53% in Q3 2023.
The average BTL interest cover ratio (ICR) was estimated at 195%, which is a rise of nine basis points compared to the same period in the previous year. It continues a trend of growth, as the average ICR in Q1 2024 was 190%.
UK Finance noted that the number of BTL fixed rates outstanding was 1.4 million, a slight increase of 3.3% on a year prior.

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The number of variable-rate loans outstanding decreased by 14.9% to 541,488 during the period.
On the arrears side, UK Finance said there were 13,000 BTL mortgages in arrears greater than 2.5% of the outstanding balance. This is a drop of 570 from the prior quarter but is 19% higher than last year.
The report found that there were 710 BTL mortgage possessions in Q3 2024, which is unchanged from the previous quarter but up by around 73% on the same period last year.
Richard Pike, chief of sales and marketing at Phoebus Software, said: “While Q3 figures aren’t as strong as Q2, which saw a surge of 26% in buy-to-let business compared to Q3’s 6.5% rise, this still shows a strong, confident buy-to-let market.
“In December, UK Finance’s annual buy-to-let report predicted a 7% drop in mortgage lending for buy-to-let purchases in 2025 compared to 2024, which was mainly due to the latest in a string of tax and regulatory blows dealt to landlords over recent years – this time on stamp duty in the Autumn Budget.
“However, if all goes according to market predictions, interest rates and mortgage rates should drop in 2025, which should encourage many landlords – particularly professional portfolio landlords – to maintain hold of their properties. Despite recent challenges, the buy-to-let market is still a high-yield investment.”