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17/12/25 3:30 pm
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The number of buy-to-let mortgage products has surged by 68% since last Christmas, while average mortgage rates for investors have fallen.
Despite the introduction of the Renters’ Rights Act, lenders have responded with strong confidence in the market and as a result, landlords have seen a big uplift in choice, according to research by mortgage adviser Alexander Hall. In contrast, first-time buyers have seen a 23% increase in product availability.
Buy-to-let investors have also seen a big improvement in average mortgage rates - down by 0.77% since December 2024 - while first-time buyers are now benefiting from an average mortgage rate 0.6% lower than last year.
The firm found that while the average property value has increased by 1.3% to £272,998 over the last year, requiring a slightly larger 15% deposit of £40,950 versus £40,414 last December, falling rates mean buyers are still materially better off.
Lenders are looking at ways to support landlords and have been, in many cases, actively expanding their buy-to-let product sets to drive up options for an evolving BTL market and ultimately increase their own lending levels, explains Jeni Browne, business development director at MFB (pictured).
“This includes introducing products for different property types and tenant profiles, as well as green and non-green options,” she tells LandlordZONE. “Plus, for each type of product, for example a five-year fixed rate, there will invariably be a spectrum of choice, from lower rates with higher fees or a higher rate with no fees, and at least a few in the middle.”
Alexander Hall MD Richard Merrett (main picture) says many major lenders have strengthened their affordability assessments over recent months, allowing borrowers to access higher loan amounts than were possible a year ago.
He adds: “The outlook remains encouraging and as we move into 2026, we expect improved mortgage affordability to continue supporting confidence and stability across the property market.”
Lee Grandin, director at Landlord Mortgages, believes the number of lenders operating in the buy-to-let sector is reaching saturation. "Some may struggle to hit lending targets as some landlords shun the buy-to-let market," he tells LandlordZONE. "More products could simply be an attempt to get their share of the business out there. My perception is that there will be a tough period ahead for landlords but that does not mean that it's worth jumping ship."
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