New BTL products help landlords expand portfolios - Mortgages - News - Moneyfacts


New BTL products help landlords expand portfolios

New BTL products help landlords expand portfolios

Category: Mortgages

Updated: 17/10/2013
First Published: 17/10/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Landlords were able to significantly expand their portfolios in the third quarter of 2013, largely thanks to the wider availability and improved choice of buy-to-let mortgage products on the market.

According to the latest Mortgages for Business Complex Buy To Let Index, landlords made use of more purchase finance than in previous quarters, with Q3 showing an increase in new purchases in every sector of the BTL mortgage market (except semi-commercial investments) which would indicate a rapid acceleration of BTL residential property investment.

This has been no doubt helped by the number of BTL mortgage products increasing for the second quarter in a row – Q3 saw 484 products on the market, up 19 on Q2 and indicating a 4% increase, despite the number of lenders staying the same.

Yields are consistently high and in fact rose in the third quarter for all property types (again excluding semi-commercial properties), being good news for landlords who can still generate a decent return despite rising house prices.

David Whittaker, MD of Mortgages for Business, commented:

"It's encouraging to see a sustained improvement in the choice of different mortgage products for landlords – and that competition should help drive cheaper deals too. Rates remain low, and yields are consistently high, which is encouraging landlords to increase activity.

"Confidence is generally high … which is sparking even more growth in the sector [and] we're expecting this surge of interest to continue. Fundamentally, demand from tenants is as healthy as ever, and will remain so for the foreseeable future."

What Next?

Compare BTL mortgage deals to boost your property portfolio

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.