Thinking of becoming a buy to let landlord?!

Landlord Expert
By Landlord Expert February 27, 2012 14:38


Whether you're looking to get a better deal on your buy-to-let mortgage or take your first steps as a landlord, now is a great time to take out an investment mortgage.

Mortgage blog imageBooming buy-to-let mortgage market

The latest figures from Paragon Mortgages have found that more than a third of mortgage brokers saw an increase in buy-to-let mortgage business at the end of 2011. The survey also revealed that buy-to-let deals now account for almost one in four mortgagesarranged by intermediaries, compared to just 19.3% a year ago.

Brokers reported that four out of ten landlords were taking out a buy-to-let mortgage to buy properties to add to their portfolio. A further third of landlords were taking advantage of low interest rates to remortgage and save money.

Mortgage experts also expect the number of buy-to-let deals to increase in 2012. Half of those surveyed believe there will be greater competition in the sector this year.

Sharp increase in the number of first-time landlords

The figures from Paragon also showed a significant increase in the number of first-time landlords. There was a four per cent increase in the number of people applying for their first buy-to-let mortgage between quarters 3 and 4 in 2011. The proportion of first-time landlords is now more than double the level at the peak of the financial crisis.

Interest rates, which are expected to remain low for several years, are encouraging more people to enter the buy-to-let market. Rents have also risen sharply in recent years which are helping landlords profit from owning investment property

John Heron, Managing Director of Paragon Mortgages, says: "The final quarter of 2011 was for many intermediaries a successful one, with increased optimism about the coming months and a steady improvement in the level of buy-to-let business being written. With record levels of rental demand being reported it is good to see that existing landlords are increasing the size of their portfolios but it is particularly notable that the proportion of new landlords is also increasing."


Landlord Expert
By Landlord Expert February 27, 2012 14:38


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