Buy-to-let product choice and affordability improving

There are now just shy of 3,000 buy-to-let products to choose from, far more than before the pandemic, data shows.

Before covid affected the UK in March 2020 there were 2,897 products, with this count falling to 1,806 in September of the same year.

Interest rates are falling slightly, with average overall 2 and 5-year fixed rates dropping by 0.03% and 0.04% this month, to 2.94% and 3.25% respectively.

Compared to before the pandemic in September 2019 average 2 and 5-year fixed buy-to-let rates are lower by 0.03% and 0.19%.

However in the 85% LTV bracket – typically the highest LTV where you can get a buy-to-let mortgage – product choice is still lacking and it’s still expensive.

There are only 19 deals available, with 2-year rates standing 0.88% higher than the September 2019 equivalent at 5.61% compared to 4.73%.

In terms of 5-year fixes to 85% LTV it’s a similar story, where products cost 0.44% more, at 5.83% compared to 5.39%.

Eleanor Williams, finance expert at, said: “Compared to a year ago, on face value borrowers will notice average rates are higher today.

“However, the rates a year ago were driven by the impact of the pandemic and product availability was low – particularly in the higher LTV tiers where rates are generally higher due to pricing for risk.

“As rental demand remains high, BTL could be a worthwhile investment and the rise in overall product choice and fall in average rates is positive. However, a note of caution as lenders’ enthusiasm to improve ranges seems to dissipate at the top end of the BTL LTV spectrum.”

Leave a Reply