Date Published 28 September 2011
The National Landlords Association has reported a continued increase in the popularity of buy to let mortgage products.
A survey by NLA Mortgages found that the number of schemes provided during the second quarter of 2011 grew by 25% when compared to the first three months of the year.
Average loan sizes also increased by £2166 to £138,525.80, representing a growth of 6.4% since January. This growth is mainly due to the greater number of lenders offering higher loan-to-value (LTV) mortgages and the availability of finance for Houses of Multiple Occupation (HMOs), which tend to be higher value properties.
Over 50% of buy-to-let offers processed by NLA Mortgages were for loans over 70% LTV – resulting in an average LTV of 67%. Low interest rates and future predictions were reflected by the increased popularity of variable mortgage products, comprising 59% of all mortgage applications.
David Salusbury, NLA Chairman, commented:
'These findings by NLA Mortgages are very positive. Landlords provide a valuable source of housing at a time when tenants are finding it increasingly difficult to find properties to rent. Any mortgage products that encourage greater investment in the private-rented sector (PRS) should be encouraged.'
Paul Rockett, managing director of NLA Mortgages, commented:
'Wider choice and better products for landlords mean that the overall buy-to-let market is improving. Although demand for finance still outstrips supply, the level of buy-to-let lending is gradually increasing giving property investors a reason to be optimistic.'
Julian Walley, Senior Partner of Lesters comments:
'With a number of new rates available through our Independent Mortgage Adviser we have seen an increase in activity across the offices with new ‘Buy to Let' purchasers. Didcot continues to be especially popular with the ease of London commuting from Didcot Parkway'.
Buy-to-let mortgage advice is available free of charge via Lesters recommended mortgage advisers. Call in to your local office, or telephone 01491 824000 or 01235 519888.