'Surge' in buy-to-let mortgage deals

Around 100 more buy-to-let mortgage deals are now available to owners of professional accommodation, compared to the situation 12 months ago, research suggests.

Figures from Moneyfacts show that while 386 deals were on offer in February 2011, this has now risen to 486.

Landlords can now benefit from lower mortgage rates too. The site's study revealed that the average buy-to-let rate has gone down from 5% to 4.79%.

Louise Holmes, spokeswoman for Moneyfacts, said: "Many aspiring homeowners have had their property dreams dashed due to strict lending criteria and large deposits, meaning the only option left is to rent.

 "This increase in demand for rental properties has resulted in a degree of competition returning to the buy-to-let sector, giving it a well-needed boost."

New figures from Nationwide have also revealed that house prices fell by 0.2% last month. A lack of demand is thought to be behind this drop, as people have found it tough to raise mortgage deposits in recent weeks.

Copyright Press Association 2012