The average cost of both fixed and variable buy-to-let borrowing is falling, according to research from Moneyfacts.

The average fixed rate buy-to-let is currently at the lowest level ever recorded at just 3.82% across all terms. The number of deals in the buy-to-let sector has also risen from 757 to 811 in just one month.

These changes come as lenders increasingly re-introduce competition across residential mortgage deals. This time last year there were 2,662 deals for borrowers looking for LTVs ranging from 100% to 75%, but now the number has increased to 2,943.

And as lenders loosen up after years of being risk adverse, the need to restrict borrowing to only those with high deposits or equity from previous homes has lessened with the number of restrictive 60%, 65%, and 70% and below deals declining from 1,021 to 845.

Moneyfacts said the battle to own the fixed rate market is set to continue and February has started with low rates, with the majority of deals at the lowest prices ever recorded.

Sylvia Waycot of Moneyfacts said: “When you consider how dire savings rates are it is hardly surprising that buy-to-let is proving popular with investors, and this is likely to increase once the rules relaxing the drawdown of pension pots in April come to fruition.

“Having had several years of the bank door being firmly shut to only the richest of borrowers, doors appear to not only be open but actively entice you in off the street with offers of fantastic rates.”