Research data

Buy to Let Mortgage Product Index

Published monthly the Buy to Let Product Index tracks the number of lenders and buy to let mortgage products currently available in the UK mortgage market.

Average Buy to Let Product Data for January 2017

 Jan17-Feb17

Number of Products & Lenders

Average number of Buy to Let Products: 1,147

Average number of Buy to Let Lenders: 36

The end of December and the beginning of January saw the usual dip in the number of products available at this time of year. Product numbers then grew steadily throughout January but failed to meet December's overall average of 1,233.

January saw Vida Homeloans enter the market as a new lender, bringing the total number of lenders in the buy to let sector to 36.

Loan to Value

The split of products by loan to value threshold remained fairly steady month on month. Only 80% LTV products lost out to 75% LTV products which increased in proportion by just 1% point.

Rates

Five year fixed rates continue to creep up in price and are now back to the level they last reached in September 2016 (when they were still coming down in price). In contrast, both two and three year fixed rates continue to fall steadily in price overall, albeit by small, incremental amounts. On average, five year tracker rates remain cheaper than their three year counterparts, and two year trackers held in price month on month.

Fixed Rate Buy to Let Mortgages
Term December January
5 year 3.72% 3.77% ( + 0.05 )
3 year 3.77% 3.76% (  0.01 )
2 year 2.97% 2.92% (  0.05 )

 

Average Tracker Rate Buy to let Mortgages
Term December January
5 year 3.22% 3.12% (  0.10 )
3 year 3.71% 3.76% (  0.05 )
2 year 2.81% 2.81% ( – 0.00 )
Average Term Tracker 4.88% 4.90% ( + 0.02 )

 

 

The pricing of fixed and tracker rates is very similar and in many instances, fixed rates are currently more competitively priced than their tracker counterparts. For some time now, we have been of the opinion that many fixed rate mortgages at two, three and five years are offering considerably better value than trackers, particularly at lower LTVs.

These averages do not include fees. To find out how fees affect the cost of buy to let mortgages view our Buy to Let Mortgage Costs Index.

The data for our Buy to Let Product Index is derived from our market-leading buy to let sourcing tool, Mortgage Flow. To look at which buy to let mortgages fit your current borrowing requirements, use our instant Buy to Let Mortgage Calculator.

To look at data that compares the buy to let sub-sectors of HMOs and freehold blocks of flats compared to mainstream buy to let property, please take a look at our Complex Buy to Let Index.

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December 2016

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December 2015

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December 2014

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ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.