Landlord BTL Products Greater Now Than In Spring Of 2020

It is a natural state of affairs that things today will be compared to how they were before the lockdown period and the start of the pandemic in the United Kingdom. We know it isn’t always helpful to look back and compare, but equally, if you want to make an informed decision in the local lettings market, you need to know what has happened, and how the market is currently performing.

At Just Lets, we know the Peterborough market well. We work closely with tenants and landlords, which allows us to stay up to date with demand in the market. We also know what tenants and landlords are looking for. We also stay in touch with what is happening nationally, helping you make informed decisions.

There are more BTL options for landlords

Information provided by Moneyfacts suggests that in September 2021, there were 2,698 products available in the buy-to-let sector. This is the largest number of products available since October 2007, when there were 3,305 products on offer.

More pertinently, in March of 2020, just before the pandemic took hold of the mortgage market, there were 2,897 products on offer. This means there are now more mortgage products available to landlords than there were before the pandemic started to affect the UK.

Eleanor Williams, Finance Expert at Moneyfacts.co.uk, spoke to online media, saying; “As we pass the 25th anniversary of the first BTL mortgages as we know them, our data gives landlords cause for positivity, as the number of products for them to choose from has risen by 153 this month, and at 2,968 is 1,162 higher than this time last year (1,806 Sep 2020). The resilience of this sector in the aftermath of a challenging 18-months is clear as choice now exceeds the number of deals available before the pandemic in March 2020 by 71 options.”

We help landlords find affordable options

Affordability should always be a key part of your thought process when investing in property, and the interest charged on buy-to-let properties is becoming more favourable to landlords. If you are looking for guidance on this matter, and where you should consider buying rental property in Peterborough, we are here to assist you.

Eleanor continued by saying; “Further cause for celebration is that the interest charged on BTL mortgages is falling, with the average overall two- and five-year fixed rates dropping by 0.03% and 0.04% this month, to 2.94% and 3.25% respectively. Compared to a year ago, on face value borrowers will notice average rates are higher today. However, the rates a year ago were driven by the impact of the pandemic and product availability was low – particularly in the higher LTV tiers where rates are generally higher due to pricing for risk. As it stands, compared to a pre-pandemic September 2019, both the average two- and five-year fixed BTL rates are lower by 0.03% and 0.19% respectively, indicating rate pricing competition for those looking for new finance for an investment property.”

While there is a great deal of positivity over what is available in the marketplace, it is important to make an informed decision. At Just Lets, we are focused on helping landlords make the right decision, in the short and long-term. If there are issues in the local lettings market, we will inform you, ensuring you recognise the ups and downs of the rental market.

However, we believe the demand for rental property is such that investing in rental property is a smart idea, and we are here to help you as best as we can.

Eleanor concluded by saying; “As rental demand remains high, BTL could be a worthwhile investment and the rise in overall product choice and fall in average rates is positive. However, a note of caution as lenders’ enthusiasm to improve ranges seems to dissipate at the top end of the BTL LTV spectrum. The maximum 85% LTV bracket has not only seen availability stall at 19 deals, but also the average two- and five-year fixed rates on offer for landlords with just 15% equity or deposit are a quite staggering 0.88% and 0.44% above their September 2019 equivalents, indicating that while lenders are competing for business, this eagerness does not seem to extend to the riskier end of the market yet.”

Just Lets – Here to Help
If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.

You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at peterborough@justlets.com or call us today on 01733 346255.