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Buy-to-let continues to bounce back

Buy-to-let continues to bounce back

Category: Mortgages

Updated: 19/07/2011
First Published: 19/07/2011

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 It is now over 6 months old so the content may be out of date.

Buy-to-let investors are benefitting from an improvement in the amount of buy-to-let mortgage finance which is available, new research has revealed.

Almost two thirds of mortgage intermediaries surveyed by Paragon Mortgages reported that the availability of buy-to-let finance has improved significantly during the past three months.

At the same time, half of those questioned said that buy-to-let applications had increased during the second quarter of the year.

On average, the intermediaries interviewed conducted 5.4% more buy-to-let business in the second quarter than in the first.

Interestingly, however, almost half of buy-to-let mortgage applications processed in the quarter were for landlords looking to extend their current portfolios.

Mortgages for first time landlords totalled 21%, up from 18% in the first quarter, while the proportion of remortgages fell.

"Government statistics just released indicate that more than 17% of English property is now in the private rented sector," said John Heron, Paragon Mortgages managing director.

"All of the market indicators, however, suggest that there is still not enough property for new tenants.

"Better availability of buy-to-let finance, particularly for professional landlords, is critical to the expansion of the supply of rental property.

"It's therefore, good to see that this is starting to come through."

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