Broker searches for BTL affordability jumped by almost a quarter in the last month against a dip in average loan sizes on offer according to Mortgage Broker Tools (MBT).
Recent data from the broker research platform found that affordability searches for BTL increased by 22% between September and October.
The average loan size offered by nearly 70 BTL lenders on MBT’s affordability panel dropped by almost 24% between July and October – a period that saw interest rates skyrocket.
Commenting on the data, Tanya Toumadj, CEO at MBT, said: “Affordability is a growing issue for BTL borrowers, whether it’s for a new purchase or a remortgage, and rising rates have driven a 24% decline in the average loan size available to property investors.
“However, demand from landlords hasn’t disappeared and our data shows that, just as loan sizes have been falling, affordability searches have been increasing.
“There is huge appetite amongst BTL investors for mortgage finance but finding the right deal has become much harder amidst the turbulent lending environment.
“This puts much greater emphasis on brokers having access to a research platform that can help them to quickly and easily identify the lenders that best suit the needs of their clients."
