The number of mortgage deals available for buy-to-let borrowers has soared to an all-time high of more than 2,000, the latest data from Moneyfacts has revealed.
This boost in product numbers, which has seen 464 new deals hit the market in the last year, is being attributed to the effect of changes to regulation which affect landlords owning four or more properties.
Rules introduced at the end of September by the Prudential Regulation Authority (PRA) mean lenders must apply stricter procedures to portfolio landlords applying for a mortgage or remortgage.
Moneyfacts thinks lenders have, as a result of the changes, opted to offer two different products to cater to the two types of BTL borrower.
Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “Last week, Moneyfacts.co.uk, reported that the number of limited company fixed-rate options were on the rise.
“These extra products, which cater for landlords looking to reassess their options after the tax changes, are yet another reason why the overall product numbers have been boosted.
“Amid all this upheaval, the market has seen many landlords and aspiring landlords take a step back to assess their options and figure out whether they are making the right choice.
“As a result, BTL providers are now competing for a smaller pool of customers. Offering variety in their range is one way in which they can compete.”
According to the data, two years ago there were 1,340 BTL mortgage products and this went up to 1,558 a year ago. Today this figure stands at 2,022.
It’s the first time on record, said Moneyfacts, that the amount of deals had passed the 2,000 mark.
Nelson added: “While it has been a tough time for the BTL market, the fact that the number of available deals is still growing shows it is still a viable option.
“However, any borrowers considering becoming a BTL landlord should seek the advice of a financial adviser, to ensure this is the right choice for them.”
