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Landlord mortgage choice expands as property market reopens
The choice of landlord mortgages has increased and some higher loan to value (LTV) rates have fallen since the property market has reopened from lockdown.
There are 280 more buy-to-let products available now compared to the start of May, according to analysis by Moneyfacts.
At 75 per cent LTV there has been a particular improvement, with 46 new two-year mortgages and 54 more five-year deals.
At 80 per cent LTV, choice has also increased, with 26 more two-year products and 20 more five-year fixes.
Rates overall have slightly increased on landlord mortgages over the period.
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However, at 80 per cent LTV rates have reduced by 0.49 per cent and 0.67 per cent on two and five-year mortgages respectively.
Moneyfacts spokeswoman Eleanor Williams said the increase in mortgage deals would be welcomed by landlords.
She added: “This positive growth in choice is reflected in the higher LTV tiers, with deals for landlords with just a 25 per cent or 20 per cent deposit or equity keeping pace across two and five-year fixed rate options.
“This is encouraging considering that early in the Covid-19 crisis, providers were focused on supporting existing customers and restrictions meant that physical valuations were not feasible, seeing many lenders reduce their offerings to lower risk, lower LTV products.
“These developments left those with less equity or deposit un-catered for.
“As we begin to see indications that the buy-to-let market may be starting to recover, the full economic impact of the current crisis is still not yet clear for tenants and landlords alike.
“However, those who are in a position to consider capitalising on possible falls in house prices to expand their property portfolios or indeed those looking to switch their current deal, may wish to move quickly.”