Landlords are Happy to Expand according to Mortgage Brokers

29 July 2012 Categories: News

Landlords are Happy to Expand according to Mortgage Brokers

The latest Paragon Mortgages FACT survey that quizzes mortgage brokers about their dealings in the buy to let market has revealed that an increasing number of landlords are applying for additional buy to let mortgages in order to expand their existing portfolios. The mortgage brokers that took part in the survey reported that 44% of landlords applying for a mortgage quoted doing so with the aim of adding to their rental property portfolios – the highest percentage reported for over a year.

The number of landlords who wanted to remortgage with the intention of raising capital to expand their portfolios also increased from 31% to 32%, however the number of potential landlords applying for their first buy to let mortgage fell by 3% to just 20%. This figure still outweighs the number of first-time buyer mortgage applications though, which stands at 16% for the last quarter.

Managing director of Paragon Mortgages, Mr John Heron said about the results, “Levels of buy-to-let mortgage business are healthy at the moment, but could be better. The market is still being affected by the wider financial markets and factors such as the Eurozone.

“However, we have made great strides in recent months and it is encouraging to see the percentage of landlords expanding their portfolios increasing.”