Mortgage Lender Choice Increases

With most of the restrictions of the pandemic now lifted, many of us feel ready to emerge from the last 16 months and begin to move on with our lives – and for some, that means moving home.

With the property market enjoying a buoyant time and mortgage availability on the increase, the mortgage options available to borrowers are plentiful. Competition for business amongst lenders means some very attractive deals are available. All of which is great news for buyers, from first-time buyers to investors and everyone in between.

In this article, we look at what this news means for those seeking the right mortgage deal for them.


Buy-to-let investors are now able to enjoy an increase in the choice of mortgages available to enable the purchase of an investment property, largely due to the increased confidence amongst lenders. With BBC Business reporting the rental market seeing a surge in demand for rental properties and therefore increased rents – the natural effect of supply and demand. This confidence has also seen lenders now making offers to investors with lower deposit rates – a 15% deposit rate now as opposed to the 20% minimum previously asked of borrowers.

Data from shows that the number of different mortgages available for buy-to-let investors is at its highest level since before March 2020, when the first lockdown began. 2,709 mortgage offerings alone were available at the start of July 2021.

And this is not the only good news for landlords – interest rates for buy-to-let mortgages have been gradually creeping down across 2 and 5 year fixed rate mortgages and spanning all loan-to-value ratios, largely due to the increase in demand and subsequent higher rental income.

With all of this positive news, now could be the time to increase your property portfolio or even dip your toe in the waters of the investment sphere for the first time. We are here if you need assistance with any Landlord related Matter, for us Property is Personal! If you are considering investing, take a look at our handy Guide to Investing in Property.

First Time Buyers

As with investors, first time purchasers have seen an increase in the number of mortgage products now available to them. An article by Zoopla reports there now nearly 200 different mortgages available to first time buyers and only needing a 5% deposit to boot.

This has largely been driven by the popularity of the 95% mortgage guarantee scheme which sees the government guaranteeing the portion of a mortgage over 80% for buyers with a 5% deposit.

In the same article, Zoopla report that there has been a robust increase in mortgage choice for those with a 10% deposit too – now over 500 deals, compared to the same period in 2020, where just 100 deals were available. This again shows the confidence in the resilience of the property market as we emerge from the pandemic and in the increase in property prices. With a buoyant market and help from various Government schemes such as the First Homes Scheme, this is all good news for first time buyers seeking a mortgage to commence their property ladder journey.

Existing Homeowners

A search on now shows over 4000 mortgage products available to those who are seeking to move from their current position within the property market. A deeper search on the same website shows a change in trend too. Previously, those with large deposits such as 40% or more would have the largest choice of products available, while there are more than 500 mortgage products available for borrowers with a 40% deposit, the highest level of choice is now for those with a 25%, or even a 20% deposit, at just over 700 deals.

As if the large array of available products was not enough to tempt some borrowers, the competition for business amongst many lenders is now seeing offerings of interest rates of as low as 1%. This could make the decision for existing homeowners to upsize or downsize an even more definite one.

As with all good things, there are often downsides to be aware of too. Although rents and house prices are on the rise, so are the associated mortgage fees and rates which is something to be aware of when seeking a deal. If first time buyers with small deposits have poor credit ratings or applicants are self-employed or have variable income, lenders can become nervous about whether or not to lend. It makes sense to carry out a free check on your credit rating prior to seeking a mortgage. Offers made to existing homeowners of mortgages with very low interest rates are frequently made with a time limit, which can be as little as 28 days, according to this article in The Telegraph.

We hope that this article has provided you with some useful information when considering mortgage deals. It can be a challenge to wade through the various deals and it pays to seek advice so that you can be sure to get the right deal for you. If you would like further advice Mortgage Advice Bureau give award winning advice and have access to exclusive deals not available on the high street.