The availability of buy-to-let products is showing “signs of stability”, analysis from Moneyfacts has revealed.
The analysis found that, overall, buy-to-let product availability rose month-on-month over the course of April to 2,883 products.
This was a increase of 39 deals on the 2,844 that were recorded in March 2024.
This follows a recent reduction in choice of 276 deals between the start of 2024 and the beginning of February, the biggest monthly drop since June 2023.
Moneyfacts finance expert, Rachel Springall, said this was a “positive turn of events for landlords” after recent months of contracting choice.
“Lenders will no doubt need to remain fluid with their product ranges and ensure they can react quickly to market uncertainty, such as volatility surrounding swap rates,” she added.
“Deeper analysis of product choice shows that lenders are now offering more two- and five-year fixed rate deals year-on-year, however, month-on-month the choice of two-year fixed deals fell slightly, but five-year options rose.”
Average rates
Moneyfacts found the average two-year fixed rate BTL across all LTVs reached 5.52 per cent in April 2024, a slight increase on the 5.51 per cent recorded the month prior.
However, this represented a decrease when compared with the same month in 2023 as April 2023 saw an average rate of 5.64 per cent.
A similar trend was observed for the average five-year fixed rate, which also increased to 5.52 per cent in April 2024 from 5.51 per cent in March.
This also represented a decrease on a yearly basis, with the average five-year fixed rate standing at 5.61 per cent in April 2023.
As a result of these findings, Springall offered advice to future landlords: “The potential returns from investing in buy-to-let may inspire borrowers to take the leap, but it is vital they seek advice to ensure it’s right for them.
“Indeed, the margin of profit from rental income may well be tighter than in previous years, due to several factors, including the cull of mortgage tax relief and the expense to cover EPC requirements.”
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
