Alan Harper, senior analyst at eMoneyfacts.co.uk, said: "The honour of the two thousandth product to appear on eMoneyfacts.co.uk goes to Chelsea Building Society with the launch of its expatriate two-year fixed rate. Two thousand products covering both intermediary and direct business markets represents an increase of around 50 per cent in number since the beginning of 2006. Its also an astonishing one hundred-fold increase since Moneyfacts first began publishing buy-to-let products in 1997.
“This represents a continuation of the staggering growth in the sector over the past few years. Not only is there plenty of evidence indicating the volume of new buy-to-let borrowing is increasing, but buy-to-let is also claiming a much larger proportion of the UKs overall mortgage market. Figures from the Council of Mortgage Lenders indicate that, in the first half of 2004, buy-to-let accounted for around 8 per cent of the aggregate amount of new mortgage borrowing. In the first half of this year, that proportion had increased to nearly 11 per cent.
“Lenders are also reviewing their buy-to-let ranges with increasing frequency. Many take the opportunity to expand the range of products they offer whenever they reprice rates. Even specialist lenders in the sector, such as Mortgage Express, now have around six times as many products as a couple of years ago.
“More and more lenders are also entering niche product areas, such as bespoke products for student or holiday lets, or where the applicant is a limited company. The idea of mixing low interest rates with high fees or high rental income requirements, which a few years ago was seen as something of an innovation, is also now much more widespread.
“This is good news for the consumer since more choice means a greater likelihood of finding a competitive deal suitable to fit their particular circumstances. Consumers should, though, still seek guidance from a qualified independent adviser if they are thinking of taking on this kind of commitment.”
