Buy to let borrowers have a greater choice of mortgages as lenders opened the market for investors.
The number of mortgage deals available to landlords soared by 25 per cent in the three months to the end of September - from 403 to 508 - while the number of lenders nudged up by one to 23.
The swelling market is the result of lenders wanting to add to their loan books as tenant demand soars, according to broker Mortgages for Business, who collated the study.
Managing director David Whittaker said: “This is the third straight quarter in which the number of buy-to-let deals has risen in response to overwhelming demand from professional investors.
"However growth over the last three months slowed to 25 per cent having risen 35 per cent in the previous quarter suggesting a seasonal fluctuation during the summer. It will be interesting to see if the figure rises again at the end of the year.
“With the base rate set to remain low for the medium term, property prices falling and demand from tenants showing no signs of dropping, investors will continue to capitalise on the healthy returns available from the buy-to-let market.”
The research also revealed some key data about the UK buy to let market for student landlords.
Average yields from buy to let mortgages increased to 6.3 per cent in the quarter, up from 5.8 per cent in the previous quarter.
HMO (house in multiple occupation) yields are slightly down to 9.3 per cent, from 10 per cent in the preceding quarter., mainly due to new loan deals for small HMOs.
These new products have also caused average loan-to-values for HMOs to rise to from 60 per cent to 66 per cent, while average loan sizes dropped from £321,836 in the second quarter to £292,969 in the third.
The average yield for multi-unit freehold blocks (MUFB) offered good returns for investors with yields rising over the last three months.
Despite landlords turning to buy smaller properties, average loans are £378,531, compared to £513,197 in the second quarter.
Average MUFB mortgage yields are 6.9 per cent, up from 6.6 per cent in the second quarter.
Average loan to values for MUFB deals were up to 64 per cent from 59 per cent in the previous quarter.
