“There is an air of resignation around the buy-to-let world that it is in for a very hard 12 months.
"Even if only 5 per cent of landlords decide to panic-sell that is still nearly 250,000 properties flooding an already fragile market,” Stewart told FTAdviser.
As of November 1, the average fixed-rate on a buy-to-let property across all loan to values now sits at 6.75 per cent according to Moneyfacts.
The central bank hiked the base rate by 0.75 percentage points last week (November 3), to 3 per cent, its biggest single increase in 33 years, but brokers say the hike has already been priced in to products.
Change in buy-to-let interest rates since August
Date | 2 Year Fixed, All LTVs | 2 Year Fixed, Max 85% | 2 Year Fixed, Max 75% | 5 Year Fixed, All LTVs | 5 Year Fixed, Max 85% | 5 Year Fixed, Max 75% |
|
01/08/2022 | 4.04 | 4.98 | 4.04 | 4.49 | 5.67 | 4.54 |
|
01/09/2022 | 4.47 | 5.15 | 4.46 | 4.72 | 5.94 | 4.76 |
|
01/10/2022 | 5.57 | 6.93 | 5.41 | 6.05 | 7.56 | 6.04 |
|
01/11/2022 | 6.75 | 7.68 | 6.69 | 6.72 | 8.28 | 6.82 |
|
Source: Moneyfacts
Lenders have returned to the buy-to-let market since pulling products in October following the mini-Budget, but the amount of choice on offer is yet to return to the level it was at.
As of the beginning of November, there were 1,407 buy-to-let mortgage products available on the market.
This was up from 988 at the beginning of October, but significantly reduced from the 2,075 that were available at the beginning of September before the turmoil began.
jane.matthews@ft.com
