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BUY-TO-LET MORTGAGES CONTINUE TO GROW IN POPULARITY

BUY-TO-LET MORTGAGES CONTINUE TO GROW IN POPULARITY (Buying)

by administrator @, Monday, September 26, 2011, 19:29

The National Landlords Association (NLA) has reported a continued increase in the popularity of buy to let mortgage products.

A survey by NLA Mortgages found that the number of schemes provided during the second quarter of 2011 grew by 25% when compared to the first three months of the year. Average loan sizes also increased by £2166 to £138,525.80, representing a growth of 6.4% since January.

This growth is mainly due to the greater number of lenders offering higher loan-to-value (LTV) mortgages and the availability of finance for Houses of Multiple Occupation (HMOs), which tend to be higher value properties.

Over 50% of buy-to-let offers processed by NLA Mortgages were for loans over 70% LTV - resulting in an average LTV of 67%. Low interest rates and future predictions were reflected by the increased popularity of variable mortgage products, comprising 59% of all mortgage applications.

David Salusbury, NLA Chairman, said: "These findings by NLA Mortgages are very positive. Landlords provide a valuable source of housing at a time when tenants are finding it increasingly difficult to find properties to rent. Any mortgage products that encourage greater investment in the private-rented sector (PRS) should be encouraged."

Paul Rockett, managing director of NLA Mortgages, said: "Wider choice and better products for landlords mean that the overall buy-to-let market is improving. Although demand for finance still outstrips supply, the level of buy-to-let lending is gradually increasing giving property investors a reason to be optimistic."

www.landlords.org.uk/mortgages


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