Strong demand for buy-to-let mortgages

Strong demand for buy-to-let mortgages

Demand from landlords for buy-to-let mortgages has increase during the third quarter of the year.

The Financial Advisers Confidence Tracking (FACT) Index from Paragon shows there was a one per cent rise in demand from landlords- compared to a sharp fall in 2016.

Remortgaging remained the top type of borrowing - accounting for 36 per cent of all new home loans, while buy-to-let deals stood at 17 per cent and first-time buyers saw a one per cent increase in the third quarter of the year.

Mortgage advisers remain upbeat and are expected a 2.4 per cent increase in mortgage business during the last quarter - a contrast to the previous two years.

“A wide variety of recent data on housing has pointed to a market that has been finely balanced. Low transaction numbers have been bolstered by higher numbers of first time buyers, house prices outside London have been creeping up and landlord activity has stabilised,” said John Heron, managing director of mortgages at Paragon.

“These trends are confirmed by our latest intermediary survey with confidence now at the highest level for some time. Despite a rather uncertain environment intermediaries are seeing higher levels of remortgage activity and at least stable demand from buy-to-let landlords,” he added.