According to Moody’s Investors Service, restricting the mortgage interest for UK buy to let landlords will most likely slow lending within the buy to let sector, at least in the short term. The current data indicates this type of lending makes up almost 17% of all mortgage lending. With so many people challenged to obtain the first rung on the property ladder, buy to let mortgage lending is growing in an effort to reap the benefits of tax relief from occupants within the property other than themselves. Since the economic crisis, buy to let lending has become more popular each year; this year being the best so far, according to Moody’s.

Emily Rombeau with Moody’s, commented on the government efforts to balance the benefits within mortgage lending, saying: “The government's decision to restrict buy to let mortgage interest relief reflects a willingness to put investors and owner-occupied borrowers on a more level playing field, given that the latter cannot claim tax relief on their mortgages.”

Rombeau added: “First time buyers' affordability has declined, as they struggle to get on to the property ladder. Affordability constraints and demographic changes have increased the share of privately rented housing and this sector's evolution has strongly contributed to the rapid growth of the buy to let sector in recent years.”

She continued: “Repeat issuers and new players will support a robust pipeline of buy to let RMBS deals this year. Issuance for this segment has accounted for 25.6% of total UK RMBS issuance so far this year, up from 10.2% in 2014.”

As buy to let mortgage lending grows, remortgage activity continues to increase. As the Bank of England sets to increase the base rate in coming months, those house owners interested in benefitting from a remortgage are still able to find attractive deals. Lenders are starting to increase rates locally, but there are many products available to help house owners save money.