There are now 1,725 different buy-to-let commercial mortgages available from a large number of lenders.
This is the highest number since late 2007, almost 10 years ago, when 1,942 buy-to-let mortgage products were available. These figures were announced by the website MoneyFacts in September 2017.
At the beginning of 2017, there was a notable fall in the number of buy-to-let mortgage products available for landlords, but this has changed in recent months as more lenders have started to enter the market.
Charlotte Nelson, spokesperson for MoneyFacts said:
“Despite reduced buy-to-let activity in the first quarter, competition among lenders remains high as providers fight to retain their standing in a diminished market.”
As a result of fierce competition among lenders, interest rates have fallen. In August 2017, the average two-year fixed rate commercial mortgage charged 2.91% interest. This fell to 2.86% in September 2017.
Landlords have faced many challenges with the rise of stamp duty and the gradual abolishment of the tax relief on commercial mortgage interest payments. At the end of this month, new affordability guidelines could make it more difficult for portfolio landlords with four or more properties to obtain a commercial mortgage. The new affordability tests could deter some landlords buying new properties.
Currently, with a large number of mortgage products available and interest rates low, landlords are in a good position to find commercial buy-to-let mortgage deals. A mortgage broker can help them hunt down the best deals to help make their property businesses successful.