UK: Buy-to-let mortgages options hit a 10-year record high

There are now 1,725 different buy-to-let mortgages available in the UK, according to comparison website Moneyfacts.

According to Moneyfacts, this is the highest number since late 2007 when 1,942 buy-to-let mortgage products were available.

The increase has come about despite a slowdown in the buy-to-let market, with Charlotte Nelson, spokesperson for Moneyfacts saying: “Despite reduced buy-to-let activity in the first quarter, competition among lenders remains high as providers fight to retain their standing in a diminished market.

The increased competition among lenders has also resulted in interest rates falling. In August 2017, the average two-year fixed rate buy-to-let mortgage charged 2.91% interest, with this falling to 2.86% in September 2017.

Despite the growth in competition, Moneyfacts does not expect rates to fall further, with lenders likely to be focused on ensuring their buy to let products are compliant with new regulations that require strict affordability checks to be carried out on buy-to-let mortgages.

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