Paragon Mortgages' most recent quarterly report on mortgage market activity has shown positive results for buy to let landlords.
The Financial Advisors Confidence Tracking (FACT) survey is a specialist report analysing activity amongst buy to let lenders.
Statistics from the survey reveal that although the amount of mortgages from intermediaries during this year’s third quarter fell to 22 (down three per cent from Q2) it still shows an increase of 12 per cent on the overall amount of mortgages introduced during Q3 last year.
As much as 24 per cent of all mortgages which intermediaries brought to the table during Q3 were buy to let products; suggesting a more positive attitude towards this section of the market.
This is also an increase from the second quarter –demonstrating that the buy to let market is “healthy” and going from strength to strength.
Improved access to finance
The survey aims to highlight intermediaries’ views on the state of the mortgage market and has revealed that 43 per cent of those questioned believe buy to let finance to be more readily available.
This amount said finance availability had got better since Q2 when only 36 per cent of people felt the same.
This represents a quarterly increase of seven per cent and demonstrates a high level of confidence in the market with a minority of just eight per cent feeling buy to let financing had actually got worse; a drop from the 12 per cent of people who said the same last quarter.
Statements from John Heron, the managing director of Paragon Mortgages, also highlighted an increase in overall buy to let lending. This grew 14 per cent in Q3 when compared to Q2 and was up 24 per cent on Q3 from 2013.
Heron claims the data demonstrates that the buy to let market is “proportionally more important for lenders in the current market” and went on to discuss the significance of a “healthy” availability of buy to let finance in the current market.
He declared that maintenance of a “competitive and high quality Private Rented Sector” was vitally important and expressed pleasure at seeing “increased confidence amongst intermediaries for this type of business”.
It's not just the Mortgage Market Review, see an earlier article about the outlook of the Buy to Let market.