Interest rates have also fallen over this period; fixed rates by as much as 1.00%. As a comparison:
- Prime products available: 2265 (5 years ago), 411 (currently)
- Average variable rate: 6.2% (5 years ago), 4.53% (currently)
- Average fixed rate: 6.03% (5 years ago), 5.03% (currently)
Rachel Springall, spokesperson for Business Moneyfacts, said:
“As interest rates have fallen for buy-to-let deals, product availability and therefore choice has also dropped a staggering 82% in five years. Lenders withdrew many buy-to-let mortgage deals as they were seen as a significant area of risk during the credit crisis.
“Due to the larger deposits required for first-time buyers as well as the strict credit checks, many more people are opting to rent.
“This demand for rental properties has increased competition in the buy-to-let market, and the continuation of falling interest rates will be welcome news to prospective landlords.
“To date the competition has been focused around the price of a few products rather than a wide selection of products, which allow for other considerations, such as service and additional benefits.”
