Plan Insurance Blog

Landlords Rejoice: More Choice in the Buy-to-Let Mortgage Market!

In the challenging landscape of the property market, landlords have at last a small reason for cheer. The latest research by Octane Capital reveals a notable surge in buy-to-let mortgage products. Over the last three months, the market has witnessed an impressive 8.8% increase, propelling the current total to a robust 1,889 options.

This surge in availability comes at a time when home movers are experiencing a small dip in mortgage product choices, down by 1% and accounting for 35% of all mortgage products. While still benefiting from a higher level of choice compared to first-time buyers, this reduction hints at the cautious approach of lenders, potentially due to the anticipation of fluctuating interest rates.

Plan Insurance can accommodate your Property Owners & Landlord Insurance needs. Just fill in our short call back form, and our professional brokers will be in contact to arrange your insurance.

Re-Mortgage Seekers Enjoying Surging Options Amidst Growing Confidence

Re-mortgage seekers, on the other hand, are currently basking in the greatest level of choice, with a 1% increase since October, making up 37% of the total mortgage products available. This positive trend aligns with a growing buyer confidence, following the Bank of England’s decision to maintain the base rate for the third consecutive time in December.

Jonathan Samuels, CEO of Octane Capital, notes that while the general expectation is for interest rates to fall, lenders are proceeding with caution. This has led to a reduction in the number of mortgage products available to first-time buyers and home movers, who may be more vulnerable to potential affordability issues caused by higher mortgage rates.

Buy-to-Let Market Resurgence: Opportunities Abound Amidst Changing Dynamics

The increased availability in the buy-to-let mortgage market serves as a silver lining, offering landlords a myriad of choices when borrowing. This development is particularly significant in light of recent concerns about a decline in buy-to-let borrowing among older landlords, primarily attributed to higher interest rates. Head of personal finance at Hargreaves Lansdown, Sarah Coles, highlights that: “New buy-to-let mortgages have fallen off a cliff among older landlords.”

Figures recently released by UK Finance showed so called “later life” made up 22% of all BTL loans in quarter four of 2023. A total of 7,980 BTL loans were arranged for landlords over-55 years of age. (These figures cover both new house purchases and re-mortgages.) This represents under half the amount 16,930 in the same period the previous year.

Despite this decline in new buy-to-let mortgage borrowing among older landlords, there is optimism that the easing pressure and lower mortgage rates in recent months may help reverse the trend. As the market continues to adapt and respond to economic dynamics, landlords find themselves at least benefitting from a greater range of mortgage options to explore in early 2024.

Find out why 96% of our customers have rated us 4 stars or higher by reading our reviews on Feefo.

To get a quote give our specialist teams a call on 0800 542 2743 or request a Call Back.

Already a client? Why not recommend us to your contacts in exchange for a £50 discount off your renewal with our Refer a Friend scheme.