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Advisers report increase in buy-to-let finance availability

Almost two-thirds of intermediaries – 64 per cent – believe the availability of buy-to-let finance has improved during the past three months, according to new research from Paragon Mortgages.

Just 8 per cent of intermediaries felt that the availability of buy-to-let finance had deteriorated.

On average, intermediaries conducted 5.4 per cent more buy-to-let business in the second quarter than in the first quarter.

Paragon says 47 per cent of buy-to-let mortgages processed by intermediaries in the second quarter were for landlords looking to increase their current portfolios, increasing from 43 per cent in Q1.

Mortgages for first-time landlords totalled 21 per cent in Q2, up from 18 per cent in Q1. The proportion of remortgages fell during Q2 to 28 per cent, from 35 per cent in Q1.

Paragon Mortgages managing director John Heron says: “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.

“Better availability of buy-to-let finance, particularly for professional landlords, is critical to the expansion of the supply of rental property. It is, therefore, good to see that this is starting to come through.”

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