The number of buy-to-let (BTL) products available has hit its highest level since the beginning of the financial crisis in October 2007, data shows.
Over the past 12 months, the total number of available BTL products has risen by 21 per cent to 2,396 in June, from 1,929 in the same month a year ago, according to Moneyfacts, the financial data firm.
In June the number of buy-to-let products has increased month-on-month by 143 from May 2019 when it stood at 2,253.
Meanwhile, average BTL mortgage rates have also risen over the past 12 months, with the typical two-year fixed rate increasing by 0.17 per cent from 2.88 per cent in June 2018 to 3.05 per cent this month.
The average five-year buy-to-let fixed rate rose by 0.11 per cent to stand at 3.54 per cent.
However, both rates still stand significantly lower than they were in October 2007 at 6.36 per cent and 6.39 per cent.
Rates steady despite increasing competition
Moneyfacts spokesman Darren Cook said that product competition within this specialised mortgage area is continuing to grow.
“The largest concentration of BTL product choice can be found at the maximum 75 per cent loan-to-value (LTV) tier, where there are currently 352 two-year fixed rate products available and 374 five-year fixed rate products available,” he said.
“Coincidently, the average fixed rates at the 75 per cent LTV tier for the two- and five-year sectors are currently 3.05 per cent and 3.55 per cent respectively, equalling or near-equalling the average rates for both terms across all tiers.
“The increase in the BTL average rates contrasts with the downward trajectory of their residential mortgage counterparts, where product competition seems to have instead resulted in rates falling.
“This disparity in trends is likely to be attributed to the different approach lenders take to risk between these two sectors, and that economic uncertainty may be having a more adverse influence on the BTL mortgage market than it is having on the residential mortgage market.”