posted on August 09, 2011 03:43
Half of mortgage intermediaries reported that buy-to-let applications increased during the second quarter.
The Financial AdviserConfidence Tracking (FACT) Index, carried out by specialist buy-to-let mortgage lender Paragon, found that on average, the intermediaries interviewed conducted 5.4% more buy-to-let business inQ2 than in the first quarter.
Availability of buy-to-let finance also improved significantly during the past three months. Ofthe intermediaries surveyed, 64% thought that availability improved and just 8% felt that it deteriorated.
While more than seven out of ten of all cases introduced by financial advisers in the second quarter were for residential mortgages (72%), two out of ten(20%) were for buy-to-let mortgages.
Nearly half (47%) of buy-to-let mortgages were for landlords looking to extend theircurrent portfolios. This has increased from 43% in the first quarter.
Mortgages for first-time landlords totalled 21%in Q2, which was up from 18% in Q1.
The proportion of remortgages fell during the second quarter to 28% (35% in Q1).
John Heron, Paragon Mortgages managing director, said: “Government statistics indicate that more than 17% of English property is now in the private rented sector. 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 is therefore good to see that this is starting to come through.”
Rob Wellstead, Managing Director of Lenwell said; “There has been a steady increase in the availability of buy to let mortgage funding which is a clear reflection of confidence in the sector.”