The number of buy-to-let (BTL) mortgage deals on the market has hit a seven-year high, according to comparison site Moneyfacts.
Figures released on 25 August revealed that there are now 1,011 BTL mortgage deals available, the highest figure since April 2008 and up from 681 at this point last year.
The cost of BTL mortgages has also fallen. The average rate for a fixed BTL mortgage currently stands at 3.8 per cent, down from 4.29 per cent a year ago and 7.34 per cent in August 2008, while the average variable BTL rate is 3.6 per cent.
Charlotte Nelson, finance expert at Moneyfacts, said: “With high rents and poor savings rates, it’s little wonder that the BTL market is booming.
“The boom in deals has undoubtedly been boosted by providers taking advantage of the new demand from thousands of pensioners making the most of the new pension freedoms, fuelling competition in the sector.
“More deals on the market mean that it’s more important than ever to shop around and weigh up the true cost of a mortgage to ensure that the best deal is secured.
“Anyone thinking about entering this sector would be wise to seek the advice of an independent financial adviser to see if BTL really is the best place for their investment.”