Buy-To-Let Mortgages Hit Two-And-A-Half Year High

Buy-to-let (BTL) mortgage availability has hit a two-and-a-half year high, fuelled by an increase in the number of lenders returning to the market, reports the Yorkshire Post.

Investment landlords seeking commercial mortgages now have the freedom to choose between 463 different deals, an increase on the 312 deals available just six months ago and the 299 deals available in May 2010.  Availability is now at the highest level it has been since October 2008, according to recent figures.

The rise in the availability of buy-to-let mortgages has been influenced by lenders’ return to the market.  Reports highlight that 64 financial institutions are now offering buy-to-let mortgages, up 16 on the previous year.

Increase in competition between financial institutions has aided in lowering the cost of commercial mortgages, with typical interest rates on buy-to-let deals falling from 5.3 per cent in 2010 to 4.97 per cent in 2011.

The recession saw a rise in the number of lenders and consumers withdrawing from the mortgage market as they struggled to find the money to respectively lend and borrow.  This led many potential homeowners to postpone their plans to purchase a property and instead find rental accommodation until the economy stabilises.

The lack of commercial mortgage finance meant that the majority of lenders have failed to achieve sufficient growth in their portfolios to accommodate this trend, with an increase in buy-to-let mortgage choice considered long overdue.

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