Property peer-to-peer lending platform LandlordInvest has benefited from the recovery of the buy-to-let mortgage market, following the pandemic-induced lockdown.
Moneyfacts’ UK Mortgage Trends Treasury Report data has revealed that there are glimmers of hope emerging for the buy-to-let mortgage market, following the significant initial impact of the Covid-19 pandemic.
The choice in products has increased, and some higher loan-to-value (LTV) average rates have been reduced. Overall, there are 280 more buy-to-let products available now than there were at the start of May 2020.
The product choice at 75 per cent LTV has increased by 46 two-year fixed rate deals and 54 more products are available in the five-year fixed rate bracket.
And at 80 per cent LTV there are now 26 more two-year fixed rate products and 20 more options available for those seeking a five-year fixed rate over the month.
Average interest rates on fixed buy-to-let mortgages have risen slightly for two and five-year fixed rates overall, likely due to the increase in the number of products that these averages are based on.
However, rates have been cut on both two and five-year fixed rate buy-to-let products at 80 per cent LTV, by 0.49 per cent and 0.67 per cent respectively.
Buy-to-let P2P lending platform LandlordInvest, which added a discount facility to its secondary market last month, experienced a surge in activity around the time that lockdown restrictions began to ease.
“There was a big spike in enquiries at the beginning, and in the middle of, June, with substantially more than we usually receive,” said Filip Karadaghi (pictured), managing director of LandlordInvest.
“Then in the last week or so it went quiet again.
“So there was a short spike which could have been correlated with retail shops reopening but it’s difficult to tell if it was a trend.”
At the start of June buy-to-let mortgage lender Landbay – which was a P2P lender until it exited the retail investment market last December – launched a new product range with higher LTVs as confidence returned to the property market.