16:32 PM, 16th April 2012, About 9 years ago 3
Buy to let mortgage brokers are celebrating a buoyant first quarter of business as landlord demand for loans increased.
Almost 80% of mortgage brokers expect buy to let to continue growing for the rest of the year, according to the findings of a buy to let broker sentiment survey by Paragon Mortgages.
The survey covering the first three months of the year showed most intermediaries reported a rise in demand for loans from landlords and an increase in mortgage availability.
Buy to let accounted for 21% of all broker mortgage business – with first-time buyers (23%) and remortgages (41%) making up the other key business sectors.
Paragon Mortgages found that 35% of brokers described landlord demand as strong and 46% as stable.
The most popular reason for enquiring about a buy-to-let mortgage was buying new property, unsurprisingly followed by remortgaging.
First-time landlords looking for buy-to-let loans also increased, following a trend set throughout 2011.
John Heron, director of Paragon Mortgages, said: “It is positive to see that intermediaries are reporting on a successful start to 2012, particularly after a challenging end to 2011 when problems in the eurozone resulted in renewed nervousness around the market.
“While we are not back to post credit crunch business levels, and will not be for some time, there has been a steady improvement in buy-to-let business.
“It is particularly interesting to see the increase in first-time landlords entering the market. This not only demonstrates confidence in the market but also that buy-to-let remains an attractive business.”
Meanwhile, in a separate survey, landlords told the lender that the highest yielding investment property is in the North and shows an average yield of 6.5%.
Next is the South West with a yield of 6.4% and the East with 6.3%.
The average yield in the first three months of the year was 6.2%, up on the last quarter of 2011, when the average yield was 5.9%.
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