15:13 PM, 1st November 2010, About 12 years ago
Experienced landlords are still expanding their buy to let portfolios and accounted for nearly 10% of all mortgage broker business in the three months ending September 30.
Soaring numbers of enquiries from tenants and a lack of properties to rent are driving demand that is giving investors’ confidence to buy more homes.
In fact, buy to let accounted for nearly 20% of all mortgage broker applications to lenders in the quarter, reveals research by specialist buy to let lender Paragon Mortgages.
The firm’s poll of brokers shows 48% of broker business was for experienced landlords looking to expand their portfolio and 33% was for remortgaging.
New landlords accounted for 16% of buy to let business, with portfolio substitution accounting for the remaining 3%.
Nigel Terrington, Paragon Group chief executive, said: “Landlord confidence has been building for some time and, as mortgage availability starts to widen, they are taking the opportunity to expand their portfolios.
“Several new lenders come to the market and, of course, Paragon has also recently resumed lending in the buy to let sector. This can only create some much needed competition and innovation and widen investment opportunities for landlords.
“The fact that nearly half of buy to let business during the period was for experienced landlords to expand their portfolios is encouraging because it is this group of landlords who will drive the growth of the market.
“With the growth of tenant demand showing little sign of slowing, the UK needs more properties in the private rented sector to help keep pace.”
Paragon recently recommenced new lending in the buy to let market, specifically targeting professional landlords needing portfolio buy to let mortgages, finance for blocks of flats and houses in multiple occupation (HMOs).
Other specialist buy to let lenders like The Mortgage Works, the Nationwide’s buy to let arm, and BM Solutions have also cut rates and enhanced product ranges.
STOP PRESS: Manchester Building Society has just launched a new broker-only buy to let deal with a three-year fixed rate at 4.99%, 70% loan-to-value and £995 arrangement fee. This is the second lowest available rate for a 36-month fixed rate loan.
For further information or to arrange to discuss you strategy with our recommended buy to let Consultants please call our Customer Care Team on 01603 894525.
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