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.

Buy to Let Mortgage Product Index - August 2017

Average data for August 2017:
Number of buy to let products: 1,228
Number of buy to let lenders: 36

Average data for Q2 2017
Number of buy to let products: 1,220
Number of buy to let lenders: 36

August saw product availability increasing again after a dip in July. The average number of buy to let products available across the month was up by 19 products to 1,228.

There was again no change in the number of lenders offering buy to let mortgages, which has remained at 36 since the start of the year.

LTVs
Similarly, there was no change in the proportion of products available at different LTVs this month (see pie chart).

Across Q2 the average maximum LTV decreased, as lenders released more products with 70% or less LTV. Although there were also more products at 75% and 80% LTV, the availability of these products did not increase as quickly as that of buy to let products with lower LTVs, leading to lower average LTV caps.

Initial Terms
As in Q1, Q2 saw more buy to let mortgage products released with five-year initial terms,while the prevalence of three-year products continues to fall. This has been led by strong demand from landlords, who are increasingly favouring the products both as a way to lock in current interest rates ahead of any coming rate hike and for the more relaxed affordability testing such products offer. One-year and term products remain at 2% and 11% of offerings respectively.

Rates
Buy to let mortgage rates did not change dramatically in August, with the greatest change being a 0.08% increase in interest rates for term trackers.

Among fixed rate products, average rates fell by 0.03% and 0.04% for five and three year products respectively, while two year fixes saw a 0.01% increase in pricing.

Two and five year tracker rates increased by 0.01% and 0.02% respectively, while three year tracker rates fell by 0.01%.


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