Buy-to-let accounts for one-fifth of mortgage business

Mortgage intermediaries have reported that remortgaging was responsible for 41% of their business in the first quarter of this year.

This was followed by next-time buyers (23%) and buy-to-let (21%). However, reports specialist lender Paragon, 79% of intermediaries expect growth in the BTL market this year.

The Paragon Mortgages’ quarterly FACT Survey asks intermediaries for their views on the current condition of the mortgage market. Of those that took part in the Q1 survey, 35% said they would describe landlord demand as strong and 46% described it as stable. Intermediaries also reported an increase in first-time landlords.

Intermediaries reported on the following reasons landlords obtained a buy-to-let mortgage in Q1:

    •    39% – portfolio expansion

    •    31% – remortgages

    •    23% – first-time landlords

    •    5% – property substitution

    •    2% – other

John Heron, director of Paragon Mortgages, said: “Whilst we are not back to post-credit crunch business levels, and will not be for some time, there has been a steady improvement in buy-to-let business.

“It is particularly interesting to see the increase in first-time landlords entering the market. This not only demonstrates confidence in the market but also that buy-to-let remains an attractive business.”a