During the first quarter 21% of intermediaries’ total mortgage business was buy-to-let, coming only marginally behind next-time buyers (23%) and remortgages (41%).
The Paragon Mortgages’ quarterly FACT Survey asks intermediaries for their views on the current condition of the buy-to-let and wider mortgage market. Of those that took part in the Q1 survey, 35% said they would describe landlord demand as strong and 46% described it as stable.
Intermediaries reported on the following reasons landlords obtained a buy-to-let mortgage in Q1:
- 39% - portfolio expansion
- 31% - remortgages
- 23% - first time landlords
- 5% - property substitution
- 2% - other
Interestingly, the number of first-time landlords applying for a buy-to-let mortgage continued to increase in Q1, following an on-going trend seen throughout 2011.
John Heron, Director of Paragon Mortgages, said:
“It is positive to see that intermediaries are reporting on a successful start to 2012, particularly after a challenging end to 2011 when problems in the Eurozone resulted in renewed nervousness around the market.
“Whilst we are not back to post credit crunch business levels, and will not be for some time, there has been a steady improvement in buy-to-let business. It is particularly interesting to see the increase in first-time landlords entering the market, this not only demonstrates confidence in the market but also that buy-to-let remains an attractive business.”
