Index highlights record amount of buy-to-let mortgage products

There was an average of 839 buy-to-let mortgage products from 31 active lenders on the market in Q1 2015, up 21 products on the last quarter.

The latest data from Mortgages for Business shows that although the rate of growth in the number of buy-to-let products has fallen, there is no doubting the general upward trend.

The first quarter of 2015 has witnessed the launch of Foundation Loan Homes and the State Bank of India, with products from these two lenders accounting for all of the growth in product numbers in the quarter.

The latest index data showed that there has been growth in product numbers across all loan to value bands, as well as growth in numbers by type and term. 

In Q4 2014 Mortgages for Business reported on the phenomenon of fixed rate mortgages commonly being offered at lower rates than their equivalent tracker products. This has, if anything, become even more noticeable in the first quarter of this year as tracker products have generally gone up in price (except at high LTV) whereas fixed rate products have stayed at much the same price (again excluding high LTV which has also drifted down).

Two year fixed rate mortgages are now roughly half a per cent cheaper than trackers (more at low LTV, less at high LTV), while both 3 and 5 year fixed price mortgages remain priced similarly to trackers.