First-time landlord products up 13% to new record high

Warren Lewis
3rd July 2018
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Data from Moneyfacts has revealed that the number of deals available to first-time landlords has risen by 13% since the start of the year to hit record levels.

According to the figures, the number of products on the market has increased from 1,034 in July 2017 to 1,123 in January 2018 and 1,268 today.

Additionally, over the past two years, the average two-year fixed rate for first-time landlords has dropped from 3.19% to 2.83%.

Charlotte Nelson, of Moneyfacts, explains: “It is great news that first-time landlords have more choice than ever before, increasing by a whopping 339 buy-to-let products in just two years. Not only do first-time landlords have more choice, but they have also seen rates fall by 0.36% over the same period.

Despite market uncertainty, providers are certainly not shying away from offering this risky group deals. Providers know all too well that many borrowers on their mortgage books will be coming to the end of their term and reassessing their deal, so they need to attract new business. As such, they’re enhancing their ranges and offering these extra deals to entice those customers who are new to the market, thereby breathing new life into their mortgage book.

While multiple regulations and tax changes may have put some borrowers off becoming a landlord, it seems many are undeterred. In fact, it has been reported that Accord has seen the number of applications from aspiring landlords double over the past 12 months.

This is little surprise when many consider bricks and mortar as a safe bet. With savings rates low, many are looking to get better returns elsewhere. Also, while rents are high and mortgage rates for first-time landlords are still falling, the potential for a decent return is high.

Potential investors should not get ahead of themselves however. Since September 2017, they face checks and questions about their finances and will need to do their homework to ensure they get the best deal."

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