Buy-to-let buzz as 53% of brokers expect increase in business
53 per cent of brokers are predicting an increase in their buy-to-let business in 2012, according to a recent survey by Paragon Mortgages.
Of that 53 per cent, 19 per cent are expecting an increase in business of 10 per cent or more. Only 3 per cent are expecting to do less BTL business this year.
John Heron, managing director of Paragon Mortgages, is pleased with this positive outlook in the midst of financial uncertainty:
“2012 is set to be another challenging year for the buy-to-let and general mortgage market as we continue to feel the impact of the eurozone crisis and wider economic factors.
“However, it’s positive to see the level of optimism among intermediaries and the fact that more than half expect to increase their level of buy-to-let business throughout the course of the year.”¹
Lenders too appear confident in the buy-to-let market.
After entering the market in December, Abbey for Intermediaries has launched four new loans as well as cutting its rates by up to 0.20 per cent. Products include a two-year fixed rate at 3.39 per cent with a 2.5 per cent fee up to 60 per cent LTV and a two-year tracker with a rate of 4.09 per cent and a £1,495 fee available up to 75 per cent LTV.
Yorkshire Building Society has also broadening its BTL lending. Having initially only lent to London and the South-East, the building society will now be extending to the whole of England and Wales from Monday. It is also decreasing its minimum property value from £150,000 to £100,000, reducing its minimum applicant age from 32 to 25 and decreasing its minimum income requirements from £35k to just £20k. It is also lifting its 40 mile distance restriction between borrower and property location.
Woolwich is also set to relaunch its 75 per cent LTV BTL mortgage which it was forced to withdraw in November. The deal will only be available direct initially but with plans to extend to brokers when it is confident systems are ready.
Content correct at time of publication