BTL affordability reaches highest level on record

BTL affordability has jumped to the highest level on record, according to the latest Mortgage Broker Tools (MBT) Affordability Index.

The analysis of real cases processed through the MBT research platform showed that the average maximum loan available to BTL landlords in January reached £421,053 — £20,000 more than in the previous month and 13% higher than the maximum loan size registered in January last year.

According to MBT, BTL affordability is now at its highest level since the company launched its index in August 2020.

Tanya Toumadj, CEO at MBT, said: “The latest MBT Affordability Index shows that the average maximum loan size available to BTL investors is now larger than ever before. 

“However, the spread between the average maximum and minimum loan sizes available to landlords has also never been wider. 

“For investor clients who want to maximise their leverage, it’s vital that brokers are able to easily identify those lenders that will offer larger loan sizes based on their individual circumstances. 

“The easiest way to do this is with an online platform and MBT Affordability offers a comprehensive and accurate BTL affordability platform for the market.”

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