LTVs average 67% across all property types over last 5 years

According to the Complex Buy to Let Index Q3 2016 the average number of buy to let mortgage products available on the market fell for the first time since Q3 2013, although product numbers still remain in the 1,000s.

The results for Q3 also revealed that remortgages yet again outstripped purchases in all categories.

Whilst rates remain low this trend is expected to continue, as savvy landlords continue to remortgage at the end of their initial product terms to avoid reverting onto their lender’s standard reversion rate.

Commenting on the findings, David Whittaker, CEO of Mortgages for Business said:

“Although product numbers have fallen slightly there is still in excess of 1,000 products out there - plenty of choice for landlords. I imagine product numbers will remain fairly stable for the next 12 months, at least until we see some new lenders enter the market.

Remortgages continuing to outstrip purchases is no surprise."

Over the five years since the index was launched, there has been very little change in the average loan to value from quarter to quarter, the average being 67% across all property types despite a mixed bag of changes in average property values and loan amounts.

For vanilla buy to lets, average property values and loans amounts continue their gentle rise in proportion with each other, whilst the reverse can be said for HMOs and multi-units which have both seen the average loan size decrease in the last five years.

Mr Whittaker said:

“I can see two main reasons for this reduction in loan amount one of which being that smaller, less expensive HMOs and multi-units are being financed in areas of higher property prices. The second reason is that in areas of the country where property prices remain low, there has been an increase in purchases and subsequently refinancing of HMOs and multi-units.

I’ve no doubt this increase in HMO and multi-unit purchases comes down to the growing demand for smaller, less expensive rental accommodation accompanied by the higher yields they tend to produce.”

The results of the index can be found here.


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