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Mortgage boost for BTL investors

Mortgage boost for BTL investors

Category: Mortgages

Updated: 16/04/2010
First Published: 16/04/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
A growing number of landlords are planning to purchase residential property for investment purposes over the next three months, despite believing problems with accessing finance still remain.

According to Paragon Mortgages, 12% of landlords are planning to purchase in the second quarter of 2010, compared with 10% who said they would buy in the first quarter of the year.

However, the survey also revealed that access to mortgage finance remained an issue, with 82% of those who attempted to secure finance for purchase or remortgage purposes finding it more difficult compared with the previous quarter.

Yet despite the apparent barriers facing buy-to-let investors in the first three months of the year, new research from Moneyfacts suggests that the situation might be about to improve.

According to the Moneyfacts Treasury Report for April, the buy-to-let mortgage sector has expanded by more than 11% during the last month.

Currently comprising of 283 products, it is the largest the sector has been for over 12 months.

"Landlords are in a strong position," said Nigel Terrington, Paragon Group chief executive.

"They are enjoying unprecedented levels of tenant demand, and structural changes taking place in the UK will create further demand."

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