The introduction of more products targeted at limited company borrowers saw the average product numbers for buy to let mortgages increase significantly in Q1 2016 rising to 1,105 from 963 in Q4 2015.
The results for Q1 also revealed that remortgages yet again outstripped purchases in all categories with the exception of HMOs, where purchase numbers were slightly higher.
Commenting on the findings, David Whittaker, managing director of Mortgages for Business said:
“With tenants looking for less expensive accommodation and landlords looking for higher yields it is no surprise that the number of HMO purchases has risen in the last quarter.
Even though remortgage transactions were higher this is not to say purchase numbers were down.
All types of residential investment showed a marked increase in the number of purchase transactions as investors rushed to beat the 3% stamp duty surcharge deadline.”
Yields for semi-commercial property also rose in Q1 making it the second highest yielding property type.
Mr Whittaker said:
“I would expect to see the number of landlords purchasing semi-commercial property to rise in the coming months as mixed use properties are technically classed as a commercial premises and as such will not be liable for the 3% stamp duty surcharge.”
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