There’s no getting away from the fact that it’s been a tough year for many people, including landlords, especially over the past few months.

Many landlords are currently facing a tougher time securing the right type of finance in the midst of a challenging BTL marketplace fuelled by limited product choice and rising mortgage rates.

This was evident in the latest mortgage market analysis by Octane Capital which revealed that the number of buy-to-let mortgage products on offer has fallen by 51.1% in the past year, down from 3,264 in November 2021 to 1,595 in November 2022.

Adding to the trouble is the fact that the average rate being offered on all buy-to-let products has increased by 2.1% in the past year to currently sit at an average of 3.09%. As a result, the average monthly repayment for landlords has climbed from £656 to £917; an increase of 39.7%. With interest-only mortgages, the average monthly payment has increased by a remarkable 242.8% to a high of £493 per month.

Looking specifically at five-year fixed mortgages, rates have climbed from 1.39% to 4.89%. This means the average monthly full payment has increased by 60.9% while interest-only payments are up 286.4%.

This data makes for some uncomfortable reading but it’s certainly not all doom and gloom for landlords as we’ve seen far greater market stability in recent weeks. This stability is providing lenders with a far stronger lending platform to enhance their current offerings, replace those BTL products which may have been temporarily withdrawn and generate more competition, even in the lead up to a notoriously quiet festive season.

Looking forward, even more competition will emerge, rates are highly likely to gradually fall, tenant demand remains high and decent yields are still achievable. Good quality, professional advice is also readily available to help tap into some attractive investment opportunities that will continue to arise and this combination will help landlords across the UK to better negotiate the BTL landscape in 2023. Meaning, there are plenty of reasons for landlords to be cheerful as we head into the new year.