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 December 2016

 Dec16-Jan17

Number of Products & Lenders

Average number of Buy to Let Products: 1,233

Average number of Buy to Let Lenders: 35

The average number of buy to let products in the market rose to a peak in the first half of December, before a sharp decline brought the monthly average back down below November and into line with the figures from October. This month saw The Family Building Society enter the market as a new lender, bringing the total number of lenders in the sector to 35.

 

Loan to Value

Products available below 75% LTV (loan to value) fell 1% to 49% of total, while products available at 80% LTV rose 1% to 11% of total.  75% LTV products continue to make up 39% of those available while there are still only eight products available at 85% LTV,  just 1% of all products.

Rates

Fixed rate mortgage pricing adjusted in favour of shorter-term loans, similarly to the changes to variable rates seen in November. Average variable rates dropped noticeably across all terms, most significantly including a 0.09% fall in average 5 year tracker rates, with the reduction being due to the withdrawal of several high LTV (and consequently higher interest) products in preparation for new offerings in the New Year.

Fixed Rate Buy to Let Mortgages
Term November December
5 year 3.67% 3.72% ( + 0.05 )
3 year 3.78% 3.77% (  0.01 )
2 year 2.99% 2.97% (  0.02 )

 

Average Tracker Rate Buy to let Mortgages
    Term    November December
5 year 3.31% 3.22% (  0.09 )
3 year 3.76% 3.71% (  0.05 )
2 year 2.85% 2.81% ( – 0.04 )

 

 

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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