Landlords and potential BTL investors will be pleased to hear that the UK's
buy to let mortgage market is beginning to show signs of recovery after the
Covid-19 lockdown, figures reveal.
The findings from Moneyfacts show that the number of BTL fixed and variable
deals has risen by 283 products since May.
The Moneyfacts' finance expert, Eleanor Williams, said: "As a whole, the
mortgage market remains a complicated and evolving landscape with the
impact of the lockdown affecting product rates and choices.
"Our research shows, however, that the buy to let sector is adapting well
with indications that landlords may have a cause for positivity."
Number of BTL mortgage deals with an 80% LTV
The figures reveal that since January, the number of BTL mortgage deals
with an 80% LTV fell from 119 to July's figure of just 31.
Also, the number of five-year fixed-rate offerings has dropped to 19 from
100 over the same period, which makes it increasingly difficult for
landlords looking for 80% LTV to find a mortgage deal.
Ms Williams added: "With mortgage rates as low as 1.19% available, it seems
there are competitive deals available for landlords.
"The buy to let mortgage market has not enjoyed a harmonious return to the
pre-lockdown competition levels and landlords who are looking for a 60% LTV
product will see that average rates have risen since January, while rates
for 80% LTV products have fallen."
The research highlights that the average rates for 60% LTV deals have been
decreasing since May, though they have risen overall since January.
The average rate in January for a 60% two-year fixed deal was 1.92% which
then rose in May to 2.39% but has now fallen back to 2.28%.
Best cities for renters revealed
Meanwhile, a survey of the best and worst cities for renters has been
According to Insulation Express, Plymouth tops the list as being the most
rent friendly city in the UK.
It is placed in top spot because of a low unemployment rate of 2.8% and low
crime levels, along with affordable rents with 32% of the average tenant's
income being spent on rent.
Derby is the best city for affordability with tenants spending 22% of their
income on rent, while tenants in London are spending 64% of their income on
The worst city for renters is Luton which also has the highest rate of
evictions per 1,000 tenants