According to Moneyfacts, this was the highest ever counted since its electronic records began in November 2011, and was up from a product count of 3,926 last month and 2,935 during the same month last year.
The data showed there was a greater choice of five-year fixed deals than two-year fixed rates, with 1,733 five-year fixes and 1,419 two-year fixes available.
Across both product terms, there were more BTL deals at the 75% loan-to-value (LTV) band, with 721 two-year fixes and 905 five-year fixes. This was up from counts of 695 and 882, respectively, in May.
The BTL product count at 60% LTV stayed flat month-on-month at 86 for two-year fixes and dropped by just one to 84 five-year fixed options.
There was slightly more choice at 80% LTV, with 721 two-year fixes, up from 695 in May, and 218 five-year fixes, up from 211 the month prior.
How to get your first-time buyer clients mortgage ready
Sponsored by Halifax Intermediaries
Two-year fixed rates below 5%
Moneyfacts’ data also found that the average two-year fixed BTL mortgage rate was 4.98% in June, the first time average pricing had been below 5% since September 2022.
This was down from an average of 5.04% in May.
At the 60% LTV tier, the average two-year fixed rate for a BTL mortgage was 4.46%, down from 4.57% last month, while pricing at 75% LTV fell marginally from 4.99% to 4.96%.
At 80% LTV, the average rate was 5.62%, down from 5.78% in May.
The average rate for a five-year fix across all tiers was 5.29% in June, a slight decline from 5.33% the month before.
At 60% LTV, the average rate dropped from 4.57% to 4.51% month-on-month, while the typical 75% LTV rate fell from 5.37% to 5.32%.
At 80% LTV, the average pricing for a five-year fixed BTL deal was 5.75%, down from 5.83% in May.
BTL landlords still under pressure
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said landlords looking for a new BTL mortgage might be “pleased to see a rise in product availability”.
She added: “Borrowers concerned about interest rates may also find it encouraging to see the average two-year fixed BTL rate has fallen below 5% for the first time since September 2022 and both the two- and five-year fixed rates have fallen for the fourth consecutive month. The average five-year fixed BTL rate is now at its lowest level in over six months, but year-on-year, the rate has not dropped as viciously as its two-year counterpart. Lenders monitor swap rates to gauge future rate expectations, and when they drop, it encourages mortgage rate cuts. Lower BTL rates might create a positive sentiment for new and existing landlords, however, there will be immense pressure on some to turn around a profit in the future.”
Springall continued: “Landlords must ensure their property has a minimum Energy Performance Certificate (EPC) rating of C by 2030 at the latest, according to the government’s latest proposals. This is why a BTL investment might not work for accidental landlords who are not able to fork out the costs to make renovations. Investors typically expect to make better profits if investing in multiple properties, but by the same notion, it can open them to more risk if property prices plummet and they are locked into a mortgage or have no tenant for an extended period of time. Finding the right location to enter the market is essential, so it’s wise to expand property searches across other areas in the country outside of the obvious major cities.
“Landlords coming off a low rate fixed deal and needing to refinance will see increasing rents as the easiest way to boost margins. Landlords will also need to keep in mind the Renters’ Right Bill, which is expected to come into force either later this year or in 2026. The new laws include abolishing Section 21 evictions and fixed-term tenancies, but also new rules on making rent increases. The legislation is designed to protect millions of renters, giving them more security, but understandably this might be the final straw for existing landlords, leading to them exiting the sector. Seeking advice before buying any property, such as the workings of setting up a limited company is essential. It is also vital for prospective investors to weigh up the costs involved in entering the BTL market, such as the minimum 5% surcharge on stamp duty land tax (SDLT). An investment in property is more than aiming for a monthly profit, it’s important to understand the longer-term returns of selling the asset, and the tax implications of selling up.”
