"Buy to Let product availability stable through the summer" - Buy to Let Product Index, July & August 2009

The number of Buy to Let products available has lowered to an average of 80 or so since May, however this figure has remained stable and is predicted to rise in September and October as lenders launch new products in the run to the end of the year.

In addition to this, the Council of Mortgage lenders released second quarter figures for 2009 which showed positive signs for the Buy to Let mortgage market with arrears improving significantly and the decline in Buy to Let lending beginning to slow.

Mike Freeman, Technical Support Manager said:

“It has been a steady summer and one which was needed to bring about a sense of stability. Having said this, the Buy to Let market is still suffering from a lack of competition and the lenders are still reluctant to lend up until now. With Bank of China (BoC) entering the market there is the possibility of some pricing movement from the few big players left but the supposed threat that BoC posed has yet to materialise.”

“On a positive note, there is now the possibility of pricing movements in the next few weeks as the lenders re-price Buy to Let fixed rates recognising the reduction in SWAP rates over the past 2 months. Those lenders with year end business targets may reduce pricing more generally to bring in the larger application numbers.”