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Lenders predict BTL boost

UCB Home Loans and Alliance & Leicester are forecasting strong growth for the buy-to-let market this year.

Research by A&L shows that the market has grown by nearly 20 per cent in the last two years and over three quarters of brokers have seen a rise in BTL transactions in the past three years. However, 43 per cent want better-value products.

UCB says there was a 40 per cent increase in the number of new BTL mortgages in the second half of last year and it says that momentum has carried over into 2006. In comparison, there was an 18 per cent drop in the market during the second half of 2004.

UCB says growth in London has been helped by the city hosting the 2012 Olympics.

Head of intermediary mortgages Mehrdad Yousefi says: “Buy to let is a strong market and our thoughts are echoed by mortgage brokers in the UK. Broker feedback suggests that they are encouraged by business and have enjoyed seeing a rise in demand in this area.

“Brokers expect to see the same degree of intense competition and product innovation as they have come to expect from the prime lending market. They understand that this market will need good-value products to sustain and assist the kind of growth they are expecting.”

Managing director Keith Astill says: “After a year, when it looked as though interest in the market had peaked, we are now in the middle of a year of rapid expansion.”

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