The UK's buy to let mortgage market is recovering
Landlords and potential BTL investors will be pleased to hear that the UK's buy to let mortgage market is beginning to show signs of recovery after the Covid-19 lockdown, figures reveal.
The findings from Moneyfacts show that the number of BTL fixed and variable deals has risen by 283 products since May.
The Moneyfacts' finance expert, Eleanor Williams, said: "As a whole, the mortgage market remains a complicated and evolving landscape with the impact of the lockdown affecting product rates and choices.
"Our research shows, however, that the buy to let sector is adapting well with indications that landlords may have a cause for positivity."
Number of BTL mortgage deals with an 80% LTV
The figures reveal that since January, the number of BTL mortgage deals with an 80% LTV fell from 119 to July's figure of just 31.
Also, the number of five-year fixed-rate offerings has dropped to 19 from 100 over the same period, which makes it increasingly difficult for landlords looking for 80% LTV to find a mortgage deal.
Ms Williams added: "With mortgage rates as low as 1.19% available, it seems there are competitive deals available for landlords.
"The buy to let mortgage market has not enjoyed a harmonious return to the pre-lockdown competition levels and landlords who are looking for a 60% LTV product will see that average rates have risen since January, while rates for 80% LTV products have fallen."
The research highlights that the average rates for 60% LTV deals have been decreasing since May, though they have risen overall since January.
The average rate in January for a 60% two-year fixed deal was 1.92% which then rose in May to 2.39% but has now fallen back to 2.28%.
Best cities for renters revealed
Meanwhile, a survey of the best and worst cities for renters has been revealed.
According to Insulation Express, Plymouth tops the list as being the most rent friendly city in the UK.
It is placed in top spot because of a low unemployment rate of 2.8% and low crime levels, along with affordable rents with 32% of the average tenant's income being spent on rent.
Derby is the best city for affordability with tenants spending 22% of their income on rent, while tenants in London are spending 64% of their income on rent.
The worst city for renters is Luton which also has the highest rate of evictions per 1,000 tenants