Buy-to-let mortgage availability rising
Mortgage finance for buy-to-let properties has improved in recent months and availability is now better than at any time since October 2008.
According to the latest research from Moneyfacts.co.uk, there are now 463 buy-to-let mortgages available on the market, compared to 312 six months ago.
In May 2010, landlords had just 299 mortgage deals to choose from.
The average interest rate on a buy-to-let mortgage has also fallen, from 5.3 per cent in May 2010 to 4.97 per cent in May 2011.
Louise Holmes, a spokesperson for the financial website, said that many lenders withdrew loans for landlords during the financial crisis.
However, the situation has now improved as demand for rental property has risen over the last few years as people have struggled to buy.
"The majority of high loan-to-value deals were withdrawn from the residential mortgage market, leaving dejected borrowers little choice but to rent rather than purchase a home," Ms Holmes remarked.
She said the latest figures suggest that the buy-to-let market may be "returning to a competitive state".
"This will no doubt please landlords and property investors who have endured a tough time over the past few years," she added.
The publication of the Moneyfacts.co.uk research comes after Paragon Mortgages reported a rise in buy-to-let lending activity in the first quarter of the year.
Almost half of mortgage intermediaries questioned by the company said they had seen an increase in business during the thee-month period.
Around one in five experienced a rise of more than ten per cent in loan activity.
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