Increase in Buy to Let Mortgage Applications Recorded

An increasing number of mortgage intermediaries have reported that they have experienced a rise in the number of applications for Buy to Let products during the second quarter of this year...

An increasing number of mortgage intermediaries have reported that they have experienced a rise in the number of applications for Buy to Let products during the second quarter of this year. Research carried out by Paragon Mortgages revealed that overall, there was a 5.4 per cent jump in demand for such home loans.

The company's figures also show that 20 per cent of all mortgages arranged by financial advisors during the April to June period were Buy to Let. In addition, almost half (47 per cent) of this business came from existing landlords looking to expand their portfolios.

Paragon Mortgages managing director John Heron commented: "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."

Meanwhile, Peter Mindenhall, researcher at IPINGlobal.com, recently advised investors in the Buy to Let sector to get to know the regional markets they are buying in. He stressed that it is essential to look at values - both of properties for sale and rents - on a very local level to ensure that any investment is viable.
 

- Friday 22 July 2011

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