Buy to let mortgage market performing strongly

Buy to let mortgage market performing strongly

The health of the buy to let mortgage market is generally a good indicator of how strongly the overall market is performing. In good news for investors, the latest mortgage updates are extremely positive.

Landlords will be pleased with the latest figures from Mortgage Brain which show buy to let mortgage costs falling as lenders compete to offer the best deals. In fact, most mainstream buy to let products have seen rate and cost reductions since Q2 2019.

The data shows that a two year fixed buy to let product purchased at 60% loan-to-value now costs 1.9% less than it did three months ago. Similarly, the cost of a 70% loan-to-value fixed buy to let mortgage has fallen by 1.1% over the same period. In addition, five year fixed mortgages at 80% loan-to-value have fallen in price by 3.5% over the past year.

Further analysis from Mortgage Brain shows an 11% increase in the number of buy to let mortgage products available from mainstream lenders over the last year, making a total of 3,859.

The chief executive of Mortgage Brain, Mark Lofthouse, said: ‘Overall the message for the buy-to-let market is positive; especially for investors looking to fix for a longer term.

‘The cost of buy-to-let mortgages continue to reach historic lows, with the market remaining competitive given the number of BTL mortgages currently on the market.’

With that in mind, it is perhaps no surprise that buy to let mortgage approvals increased 5.5% year-on-year in July according to the latest reports from UK Finance.

July saw 5,500 new buy to let mortgages and a further 15,100 remortgages being purchased, the latter representing a 2% rise over the same month in 2018.

Andrew Montlake, managing director at Coreco, said: ‘What’s encouraging is the pick-up in buy-to-let purchase mortgages. After a tumultuous four years, the market appears to have bottomed out.

‘The property and mortgage markets as a whole are ticking along nicely.’

Are you looking for your next UK buy to let investment? Check out our available opportunities today!

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