Mortgage Broker Tools (MBT) has released its latest research, which reveals that the loan sizes offered to buy-to-let borrowers have bounced back following the market contraction of last autumn. The analysis of cases processed through the MBT research software indicates that the buy-to-let affordability fell to its lowest level on record in November 2022, with almost a fifth (19%) of enquiries failing to locate a suitable lender capable of providing the requested loan size. However, in recent weeks, there has been a comeback of competition in the market, with lenders cutting rates and offering more achievable stress testing, leading to only 10% of buy-to-let enquiries being regarded as unaffordable in January 2023.

Not only that, but MBT also experienced a record number of monthly buy-to-let mortgage enquiries in January. This elevated demand spanned a range of buy-to-let client types, including first-time landlords and investors searching for variable rate products. Interestingly, the top lender for buy-to-let affordability was The Mortgage Works, which ranked as the top affordability option on 11% of all enquiries.

Tanya Toumadj, the CEO of Mortgage Broker Tools, said, "The last quarter of 2022 was a tough time for buy-to-let investors, as rate increases had a significant impact on stress tests, and the loan sizes available shrank considerably. However, buy-to-let has bounced back, and the situation has improved rapidly. The return of competition to the market, coupled with lenders cutting rates and offering more achievable stress testing, has brought about an upswing in the market."

While the outlook for brokers appears brighter than it was just a few months ago, buy-to-let clients still face challenges. It is therefore vital that brokers have access to research software that enables them to assess the available options to their clients quickly and easily. Fortunately, MBT is the most comprehensive research software available in the market, offering brokers precise calculations of how much their clients can borrow from a panel of over 40 residential and nearly 70 buy-to-let lenders, based on affordability and criteria. Results from all lenders are delivered in under a minute, with no approximations or estimates.