The number of buy-to-let mortgages available to landlords on the market has hit the 1,000 mark, representing a seven-year high. It is the first time since April 2008 that the number of mortgage products has hit 1,000, according to a Moneyfacts report. The boom can be attributed to new demand from thousands of pensioners making the most of the new pension freedoms, according to experts.
“Many retirees are looking towards buy-to-let and the increased range of products, many with increased age limits, reflects this,” says a spokesman for Property 118’s landlord providers Discount Insurance.
The wider range in products has been accompanied by falling average interest rates, which have dropped by around 3% over the same period. The Mortgage Works, for example, have reduced their rates by up to 0.5% on some buy-to-let products meaning some of their lowest interest rates ever. These improved rates mean investors have the opportunity to make even bigger returns on their investment.
“Despite forthcoming changes in taxation, buy-to-let remains a very attractive proposition for many, especially those looking to invest lump sums from their pensions,” added the spokesman.