The total number of buy-to-let mortgage products on the market has reached its highest level since the recession in 2008 as competition among lenders intensifies, according to Moneyfacts.
There are currently 1,725 buy-to-let mortgage products available, up from 1,339 in September last year, and the highest level since December 2007 when there were 1,942 buy-to-let products available.
The data suggests that the market has now recovered from the stringent affordability rules introduced at the start this year, when there was a sharp decline the volume of products available to landlords.
Since then, the number of deals on offer has gone from strength to strength, culminating in a rise of 7%.
|Total number of live BTL products||1,339||1,557||1,613||1,725|
Source: Moneyfacts Treasury Report
Consequently, rates have fallen, with the average two-year buy-to-let fixed rate down from 2.91% in August to a new record-low of 2.86% in September.
Charlotte Nelson, finance expert at Moneyfacts, said: “[Mortgage] providers are now starting to get ready for further changes at the end of September, which will see lenders apply stricter standards to those with four or more properties.
“It is still uncertain how providers will choose to react to the new changes, but product numbers could climb as providers start to target their products to the two different types of borrower. However, despite this increased choice, rates might not improve.
“The extra pressure on the buy-to-let market could be a turning point, with the competition that is currently alive and well amongst providers perhaps starting to ebb as they shift their focus to ensuring the new regulation is followed.”