Number of BTL mortgage products rises

The UK mortgage market is showing signs of recovery with a big increase in the number of products available across all buyer segments – especially buy to let lending.

Data from specialist property lender Octane Capital shows a rise in the number of products across the board since the Bank of England’s decision to hold the base rate at 5.25% in September last year.

First-time buyers have seen the greatest benefit, with a 7.7% increase in product availability in the second quarter of 2024.

Buy to let investors have also seen a notable rise, with a 6.2% increase in the last three months.

As a result, buy to let mortgage products now account for a fifth of all products in the current market.

‘Bank of England’s cautious approach’

The firm’s chief executive, Jonathan Samuels, said: “We’re yet to see interest rates fall despite inflation now seemingly under control, but given the prolonged period of economic uncertainty that has enveloped the nation and the Bank of England’s cautious approach in managing it, it’s no surprise that it’s been deemed too early to cut rates.

“The good news is that since the base rate has been held at 5.25%, a greater degree of stability has returned to the mortgage sector and the wider property market.”

He adds: “As a result, lenders have been increasing the number of products available to all buyer segments and this greater level of choice not only benefits buyers but demonstrates confidence in the market.”

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