Loan sizes offered to BTL borrowers have bounced back following the market contraction last autumn, revealed the latest Mortgage Broker Tools (MBT) research.
According to data — obtained from analysing real cases processes through the MBT research software — showed that only 10% of BTL enquiries were deemed to be unaffordable in January 2023.
This is a drop from the results at the end of 2022, when BTL affordability fell to its lowest level on record — with 19% of enquiries failing to find a lender able to provide the loan size required in November 2022.
MBT has also seen a record number of monthly BTL mortgage enquiries in January from a range of clients, including first time landlords and investors looking for variable rate products.
The top lender for BTL affordability was The Mortgage Works, which was the top affordability option for 11% of all enquiries.
Tanya Toumadj, CEO at MBT, said: “The last quarter of 2022 was a tough time for BTL investors, as rate rises significantly impacted stress tests and the loan sizes available contracted considerably.
“However, BTL has bounced back and the situation has improved quickly; competition has returned to the market, lenders are now starting to cut rates and many are offering more achievable stress testing.
“BTL clients do still face challenges, however, so it’s vital that brokers have access to research software that enables them to quickly and easily assess the options available to their clients.”
