Buy to let mortgage inquiries drop by a third

Buy to let mortgage inquiries drop by a third

0:02 AM, 5th January 2024, About 5 months ago

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There has been a substantial decline in buy to let mortgage inquiries across the UK for December 2023, data reveals.

The findings from technology firm Twenty7tec show there were 175,108 buy to let mortgage searches – 32.8% decrease on November’s figure.

However, property valuations and loan requirements for BTL investments showed slight increases, with the average BTL property valuation rising by 0.9% to £318,599.

The average loan required went up by 1.2% to £186,144.

Buy to let applicant incomes also increased, with the average combined income rising by 7.6% to £84,333.

Buy to let mortgage inquiries

In London, the buy to let mortgage inquiries echoed the national trend with 8,220 searches – a 33.6% fall.

The average BTL property valuation in the capital stood at £551,486, and the average loan amount was £302,447.

However, the average combined income of applicants reached £93,844.

Nathan Reilly, a director at Twenty7tec said: “December is always a quieter month than November, but December 2023 was busier than prior year ends.

“January tends to be when we see a 70% rebound in the market compared to December.

“In fact, Januarys normally outperform the prior November too, so we are looking forward to a busy period in the run-up to the interest rate decision on 1 February 2024.”

Downturn in other areas of the mortgage market

The company’s data also highlights a downturn in other areas of the mortgage market with searches for purchasing mortgages dropping by 36.8%.

Remortgaging inquiries saw a 29.3% decrease and first-time buyers also showed less interest, with their searches falling by 39.6%.

The distribution of fixed mortgage product searches shifted in December, with two-year fixed mortgages making up 49.65% of all searches.

Mid-term fixed mortgages (three to five years) comprised 31.95%, and longer-term fixed mortgages (five to 10 years) represented 18.4%, marking a three-year low.

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