More than 1,000 mortgages for first-time landlords

Fresh data from Moneyfacts.co.uk shows that there are currently 1,047 mortgages available to first-time landlord

Despite the government’s decision to introduce a number of measures to curb the growth of buy-to-let landlords, prompting concern that the buy-to-let boom of recent years may be coming to an end, buy-to-let property remains an attractive investment at a time of low interest rates and volatile stock markets.

Many prospective buy-to-let investors are also attracted to the vast array of cheap mortgage products on the market, with more than 1,000 deals now available to choose from, according to new figures.

Fresh data from Moneyfacts.co.uk shows that there are currently 1,047 mortgages available to first-time landlords, up from 956 a year ago and a significant jump from the 650 on the market in April 2015.

Figures presented to Landlord Today by Moneyfacts earlier this week revealed that there are currently 1,556 buy-to-let mortgage products available, up from 1,352 a year ago, meaning first-time landlord products account for 68% of the overall buy-to-let mortgage market, down 5% year-on-year, and a notable reduction from 81% in April 2015.

“By their very nature, first-time landlords lack experience in managing rental properties, and this is considered more of a risk now than perhaps it once was,” said Charlotte Nelson, finance expert at Moneyfacts.

Much of this could be due to tougher affordability rules, which have reduced the amount landlords can potentially borrow, which may be disproportionately affecting first-timers.

“The extra regulation means borrowers will face added checks and questions about their finances,” explained Nelson.

“With savings rates remaining in dire straits, BTL still looks like a good option,” she added.

BEST BUYS – Direct Products – BTL 1st Time Landlord Rates

Provider

Rate

Rate Type

Period

Max LTV

Min Fee

Redemption

Virgin Money

1.80%

Variable

01/07/2019

60%

£995

To 01/07/2019

Leek United BS

1.99%

Variable

2 years

75%

£1,495

1st 2 years

Virgin Money

2.29%

Variable

01/07/2019

75%

£995

To 01/07/2019

Coventry BS

1.69%

Variable

Term

65%

£1,999

None

Post Office Money®

1.98%

Fixed

30/04/2019

75%

£995

To 30/04/2019

Virgin Money

1.99%

Fixed

01/07/2019

75%

£1,995

To 01/07/2019

Post Office Money®

2.28%

Fixed

30/04/2020

60%

£995

To 30/04/2020

Barclays Mortgage

2.89%

Fixed

31/05/2020

75%

To 31/05/2020

Barclays Mortgage

2.49%

Fixed

31/05/2022

65%

£1,850

To 31/05/2022

HSBC

2.79%

Fixed

30/06/2022

75%

£1,999

To 30/06/2022


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Written by: Houseladder