The average rental yield increased by 0.79% over the quarter to 6.94% and the average loan to value on buy-to-let deals went up by 2.03% from 63.41% to 65.44%
The average loan size went down 12.36% from £151,413 in the third quarter to £132,705 in Q4 2011.
Andy Young, chief executive at TBMC, said: “2011 was a good year for the buy-to-let mortgage market with an increase in the number of lenders and products available, which has resulted in wider choice and better deals for landlords.”
“The slight fall in average rates indicates that despite the continuing concerns over the eurozone impacting wider financial markets, increased competition in the UK buy-to-let mortgage market has helped to keep the pricing of products down.”
Fixed rate mortgages increased in popularity making up 52% of applications in Q4 2011, up from 38% the previous quarter.
Young said: “This change in product preference could be a reflection of the current uncertainty in the financial markets concerning the eurozone problems.”
He added that the remortgage market for buy-to-let products also remained healthy as there is a good range of products available for remortgaging, including those with incentives such as free valuations and no legal fees.
“With stagnant house prices and the opportunity to expand their property portfolios, landlords are increasingly looking to release equity from existing properties to make further purchases,” Young said.
