In a boon for landlords, the buy-to-let (BTL) mortgage market has witnessed a significant surge, with the number of available products increasing by 8.8% over the past three months. This revelation comes from a comprehensive analysis conducted by Octane Capital, shedding light on the evolving landscape of mortgage products across various segments.
The research by Octane Capital provides a detailed overview of the changing dynamics in the mortgage market:
- Landlords Lead the Pack: Landlords have emerged as the biggest beneficiaries, experiencing an 8.8% uptick in the availability of BTL mortgage products. The current total stands at an impressive 1,889 products.
- First-Time Buyers Face Challenges: In stark contrast, first-time buyers encounter a challenging scenario in the current market. Octane’s findings indicate a meagre 595 mortgage products available to first-time buyers, constituting a mere seven percent of the total market. Furthermore, this segment has witnessed a 3.4% reduction in the last three months, marking the most substantial decrease among all mortgage product types.
- Moving Home Becomes Slightly Tricky: Existing homeowners looking to move have experienced a marginal decline of one percent in available mortgage products over the past three months. Despite this, they still enjoy a relatively higher level of choice compared to first-time buyers, with approximately 3,000 mortgage products at their disposal, accounting for 35% of all mortgage products.
- Remortgagers Rejoice: Those seeking to remortgage currently enjoy the highest level of choice, with a one percent increase in available products since October, constituting 37% of the total mortgage products.
Octane Capital’s Chief Executive, Jonathan Samuels, sheds light on the factors influencing the mortgage market: “There has been a growing level of buyer confidence since the Bank of England held the base rate for a third consecutive time in December. However, cautious lending practices have led to a reduction in available mortgage products for first-time buyers and home movers.”
Samuels continues, “Buy-to-let investors, on the other hand, are benefiting from an increased level of choice, possibly due to a more resilient market and fewer affordability concerns related to potential interest rate hikes.”
A notable point worth mentioning is that through NetRent, landlords now have access to the complete range of mortgage and remortgage products, further enhancing their options in this thriving market. The landscape may continue to evolve as market dynamics respond to economic shifts and lending practices, making it imperative for investors to stay informed and capitalize on the available opportunities.
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If you have a mortgage enquiry call NetRent on 01352 721300 for independent advice about all types of residential, buy-to-let and commercial mortgages and remortgages.