Massive surge in buy to let mortgage choice – now over 2,000 products
The buy to let mortgage choice of products on the open market has passed the 2,000 mark for the first time.
This is despite the onslaught of fiscal changes, new regulations and uncertainty facing the buy to let sector.
Moneyfacts, the independent mortgage market monitoring service, says there are now 2,022 different buy to let mortgage choice productions – an increase of 464, equivalent to well over 20 per cent, in just one year.
“Amid the upheaval, the market has seen many landlords and aspiring landlords take a step back to assess their options. As a result, buy to let mortgage choice providers are now competing for a smaller pool of customers. Offering variety in their range is one way in which they can stay relevant” says Charlotte Nelson, Moneyfacts’ financial expert.
The changes could also have had a more direct effect on the market, as the Prudential Regulation Authority’s rules on portfolio landlords (those with four or more properties) could very well have boosted product numbers.
With lenders now having to apply stricter standards to portfolio landlords, Nelson says: “Providers may well have opted to offer two different products to cater to the different borrower types.”
Another aspect adding to the number comes from last week’s news that the number of fixed rate mortgages available to limited companies had reached an all-time high.
“These extra products, which cater to landlords looking to reassess their options after the tax changes, are yet another reason why the overall product numbers have been boosted,” states Nelson, who advises anyone considering a BTL mortgage to seek the advice of a financial adviser.