Buy-to-let mortgage sector struggles back to life

There are just 306 mortgages available to buy-to-let landlords, or one tenth of what was available at the peak of the market (3,648) in July 2007.

However, a slow recovery looks to be under way, according to Moneyfacts. This time a year ago, there were 45 active lenders in the sector, whereas today there are 54.

Just over a year ago, buy-to-let products had fallen by 95%.

Spokeswoman Michelle Slade said: “Although the market remains difficult for BTL investors, we are seeing real signs of improvement, with rates falling and the number of lenders and products increasing.

“Aldermore has made a big splash since entering the market, while The Mortgage Works continues to offer the widest choice for borrowers.”


She added: “The market has taken a big hit in the last few years, but it is slowly starting to fight back.

“Lenders are returning to the market, bringing much-needed competition back to the sector.



“The best deals will continue to be offered to those with a sizeable deposit, but those with just a 20% deposit are starting to see more options available.

“Rental income and tenant demand continue to rise due to an increase in people opting or needing to rent rather than buy.”