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Buy-to-let market

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 30. September 2022

Looking to speak to mortgage brokers about the buy-to-let market. 

  1. What is product choice like at the moment? Have lenders been pulling fixed rate deals? 
  2. Can buy-to-let landlords still get deals they want?
  3. What advice would you give people looking at a buy-to-let mortgage currently?

3 responses from the Newspage community

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Craig Fish
Director at Lodestone Mortgages
We have noticed a significant drop in the number of buy-to-let mortgage products available, particularly fixed rates. This is not unexpected, of course, based on the news we have seen over the past week following the 'not so mini budget'. As of Friday though, we started to see rates being brought back to the market. Landlords are still able to get deals but of course the choice isn't as great as it was a week ago, though this is likely to improve over the coming weeks. For those looking to get a buy-to-let mortgage right now, I suggest that they still actively look for property, but do their sums properly, and make sure that the numbers work for them. The calculations for buy-to-let affordability are now tougher, and so what once worked, now may not. On the mortgage side, whilst there are some products available, I am currently advising clients to hold fire until early next week, when I expect many more rates to return.
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Rob Peters
Principal at Simple Fast Mortgage
The big issue for investors is that yields are being eaten away by increased interest rates. Rents can only increase by so much in a short space of time and, with property prices at an all-time high, this makes much of the market unappealing at present. Even if we do secure a workable mortgage rate for a client, the market is switching so quickly that the mortgage is likely to have been withdrawn or replaced by a more expensive counterpart by the time we get to application.
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Paul Neal
Mortgages & Equity Release Advisor at First Choice Financial Services
At this rate, the buy-to-let market will be a thing of the past. Ever increasing mortgage rates and stricter lending affordability are going to result in a decrease in stock as landlords stop purchasing properties as it's just not financially viable. It's also hard to increase rents without rising defaults and void periods. There are dark clouds looming over buy to let.