Half of mortgage intermediaries reported that buy-to-let applications increased during the second quarter, research by Paragon Mortgages has revealed.
The Financial Adviser Confidence Tracking (FACT) Index, carried out by the specialist buy-to-let mortgage lender, found that, on average, the intermediaries interviewed conducted 5.4 per cent more buy-to-let business in Q2 than in the first quarter.
Availability of buy-to-let finance has also improved significantly during the past three months. Of the intermediaries surveyed, 64 per cent thought that availability improved and just 8 per cent felt that it deteriorated.
Paragon’s FACT Index also showed that more than seven out of ten of all cases introduced by financial advisers in the second quarter were for residential mortgages (72 per cent), and two out of ten (20 per cent) were for buy-to-let mortgages.
Interestingly, 47 per cent of buy-to-let mortgages processed by intermediaries in the second quarter were for landlords looking to extend their current portfolios. This has increased from 43 per cent in the first quarter. Mortgages for first-time landlords totalled 21 per cent in Q2, which was up from 18 per cent in Q1. The proportion of remortgages fell during the second quarter to 28 per cent (35 per cent in Q1).
John Heron, Paragon Mortgages managing director, said: “Government statistics just released indicate that more than 17 per cent 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’s therefore, good to see that this is s
