Buy-to-let (BTL) mortgage deals have grown to the highest level since March 2020 - additionally year-on-year average rates have grown.
According to research carried out by financial information company Moneyfacts, BTL mortgage market deals have recovered from the impact of Covid-19 - standing at 2,709 at the beginning of July. This is close to the 2,897 deals reported in March 2020.
Year-on-year, the average rate has however increased, with the average rate on two-year fixed rate deals up from 2.61% in July 2020 to 2.98% in July 2021. The average five-year rate has also increased from 2.97% to 3.28%.
Moneyfacts finance expert Eleanor Williams said: “Landlords now have the highest level of product choice that we have recorded in over a year. At 2,709 the number of products available to investors is far more than the choice they were faced with this time last year, but perhaps even more interesting is that there are 365 deals more available now than we recorded in July 2019, demonstrating the strength and resilience of this sector in the aftermath of an unprecedented 18 months.”
According to its research, those with a 25% deposit - who would need a 75% loan-to-value (LTV) mortgage - continue to have the most choice of deals with 952 LTV deals available this month. Additionally, the average rate on deals at 75% increased year-on-year - going up from 2.72% in July 2020 to 3.01% in July 2021.
Another positive for landlords is the fact that since 2019, average rates have fallen - which is good news for those coming to the end of a two-year fixed deal. Moneyfacts research found in July 2019 the average rate on this type of deal was 3.01% - 0.03% higher than the average rate in the same month in 2021.
Additionally, the average rate at a 75% LTV on both two and five-year fixed deals have fallen since 2019 - dropping by 0.01% and 0.15% respectively.