Landlords searching for a new deal will find the choice of buy-to-let mortgages has hit a record high, with 3,860 products available.

Moneyfactscompare.co.uk reports that this is the highest number since its records began in November 2011.

It comes as buy-to-let rates continue on a downward trend, with the average two-year buy-to-let residential mortgage rate dropping to 5.17%, while the average five-year rate is 5.39%.

This time last year, the average two-year BTL was 5.52% and the average five-year BTL stood at 5.52%.

It compares to March 2023, when the average two-year BTL was 5.65% and the average five-year was 5.64%.

BTL rate cuts

Virgin Money is one of the latest lenders to have reduced its two and five-year fixed rates with a £995 fee by 0.10%, starting from 4.39%.

Meanwhile, The Mortgage Lender has reduced its five-year fixed rate standard products by five basis points and its five-year fixed rate HMO by 10bps.

“Lenders are clearly working hard to attract new business, such as those launching new deals at higher loan-to-value ratios and even deals created for a limited company,” said Rachel Springall, of Moneyfactscompare.co.uk.

“Landlords will hope rates come down this year, but sticky inflation can delay further base rate cuts, and the swap rate market remains unpredictable. Borrowers would be wise to navigate the latest deals if they are coming to the end of their fixed deal and seek advice if they need support.”

Lee Grandin, of Landlord Mortgages, tells LandlordZONE that for those landlords who have remained active, the general consensus is that there are plenty of bargain properties around.

“The frustration is that they don’t have the time to take advantage of so many property deals as they already have projects,” Grandin added.

He cites the example of one landlord who was interested in a property but was tied up with another project. “That property had four cash buyer offers this time, when last year it had one. The vendor was right to reject the offer…and is now even thinking of keeping the property on the market a little longer.”

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