Buy-to-let landlords are facing a significant reduction in mortgage choices as well as rocketing interest rates, according to research by Octane Capital.

The lender’s analysis of the market revealed the number of buy-to-let mortgage products on offer has fallen 51.1% over the past year, down from 3,264 in November 2021 to 1,595 in November 2022.

In addition, the average rate being offered on all BTL products has increased by 2.1% during the same period, currently sitting 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%. For interest-only mortgages, the average monthly payment has risen by as much as 242.8%, according to the research.

Rates for five-year mortgages have climbed from 1.39% to 4.89%, meaning the average monthly full payment has increased by 60.9%, while interest-only payments are up 286.4%.

Jonathan Samuels, CEO of Octane Capital, commented: “The reduction in product choice for buy-to-let mortgages has been influenced largely by a consistent string of Bank of England interest rate hikes which has led to many lenders pulling their buy-to-let range.

“However, with stability gradually returning to the market, we fully expect 2023 to bring with it a far more settled market for landlords and buy-to-let investors.”