Brokers report improvement in availability of buy to let mortgages

Landlord Expert
By Landlord Expert November 11, 2010 13:26

Almost half of mortgage brokers reported an improvement in the availability of buy-to-let mortgages during the third quarter of 2010, according to research by Paragon Mortgages.

Its latest Financial Adviser Confidence Tracker report found 43 per cent of a survey panel of brokers said the availability of mortgage finance had improved in the three months to the end of September.

The survey revealed that 38 per cent found buy-to-let mortgage finance availability remained unchanged during the third quarter, while 19 per cent said it had worsened.

John Heron, managing director of Paragon Mortgages, said: "The number of buy-to-let mortgages has been rising in recent months as lenders come back to the market or new lenders are launched, and criteria has also improved slightly.

"This is reflected in intermediaries' view of availability of buy-to-let finance with more than double the number of brokers saying that it has improved rather than deteriorated.

"However, the market is still significantly below its July 2007 peak and access to finance remains difficult for professional landlords in particular. This is why Paragon's return to the sector is significant for this market as our service is designed to specifically cater for professional landlords."

Simon Tyler, owner of Surrey-based Tyler Mortgage Management, said: "On the one hand, a number of new lenders have started to be active in the buy-to-let arena, which is encouraging, as of course is the return to lending of Paragon.

"There is still however a long way to go before we reach a more normal market. Landlords will need better pricing and more generous criteria in order to build their portfolios to match demand and this will still take some time to deliver."

Landlord Expert
By Landlord Expert November 11, 2010 13:26

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