How the slowing of the buy-to-let market has had a positive impact on BTL lending

News at Townends | 19/11/2018

How the slowing of the buy-to-let market has had a positive impact on BTL lending

With changes to taxes and regulation within the buy-to-let market, landlords have been on the receiving end of a significant shape up to their industry recently. However, the tightening of the market has had a positive impact on buy-to-let in Britain.

Faced with an onslaught of changes, it comes as little surprise that buy-to-let purchases have been steadily dropping in recent months. Though the slowing of the market has come with a silver lining for landlords, as it is forcing buy-to-let (BTL) mortgage lenders to offer attractive, low interest rate deals as a means of encouraging borrowers.

In October 2018, the average five-year fixed BTL rate fell to its lowest level on’s records. The rate dropped to an average 3.40% from 3.77% in October 2016.

BTL mortgage rates remain low despite this summer’s Bank of England rate rise, which saw the base rate increase by a quarter of a percentage point from 0.5% to 0.75%, putting it at the highest level since March 2009.

Given the likelihood of further base rate rises in the pipeline, landlords currently on Standard Variable Rates (SVR) are being encouraged to swap to fixed rate BTL mortgage products.

As’s financial expert Charlotte Nelson recommends:

“While it is great news for landlords that the long-term deals are cheaper, borrowers know all too well that with the potential for further base rate rises in the future, these low rates are unlikely to last. Therefore, any borrow sitting on their SVR or coming to the end of their term would be wise to consider a new deal now before it’s too late.”

Simply Business notes the positive impact of the slowing down of the BTL sector in Britain, stating:

“It seems there’s at least some light at the end of the tunnel for landlords, with mortgage lenders being forced to offer more favourable interest rates.”

If you are looking to make a Buy-to-Let investment in London or the south east, Townends Estate Agents can help you find the right property investment. Our team of property experts can also offer advice on mortgages and protection. Get in touch with Townends Estate Agents today for a one-stop solution to all your property buying, selling and letting requirements.