Landlord News

Mortgage deals for new landlords at record low

Em Morley - July 5, 2016

Fresh research from MoneyFacts has revealed that the proportion of mortgage deals for new landlords has dipped to a record low.

Annually however, the number of buy-to-let mortgage deals has increased.

New deal lows

Just five years ago, the percentage of buy-to-let market available to first-time landlords stood at 82%. Now, this figure has dropped to 75%.

Charlotte Nelson, Finance Expert at, noted, ‘despite all the changes to regulation in the buy-to-let market, the number of buy-to-let mortgages has increased: however, first-time landlords have been missing out on this boost in product numbers. Indeed, the percentage of the market that is available to new landlords has now dropped to just 75%, down by around 10% in two years.’[1]

‘As first-time landlords don’t have a proven track record in managing rental properties, offering them a buy-to-let mortgage poses a greater risk to the lender and it’s this risk that is making the number of first-time landlord deals remain relatively static,’ she continued.[1]

Mortgage deals for new landlords at record low

Mortgage deals for new landlords at record low


Nelson feels, ‘the additional regulation in the buy-to-let market and the added economic uncertainty following the Brexit vote means even more lenders may reconsider whether first-time landlords are a safe bet. As a result, would-be landlords are likely to face more probing questions about their finances than their more experienced counterparts.’[1]

‘Nevertheless, high rents and rock-bottom mortgage rates mean that buy-to-let is still an attractive proposition for aspiring landlords, particularly those who are fed up with the dismal savings options currently available. However, buy-to-let is not without its risks, so anyone considering it as an option should seek the advice of an independent financial advisor to determine whether it is the best choice for them,’ she concluded.[1]