The National Landlords Association (NLA) has reported a continued increase in the popularity of buy to let mortgage products.
A survey by NLA Mortgages found that the number of schemes provided during the second quarter of 2011 grew by 25% when compared to the first three months of the year.
Average loan sizes also increased by £2166 to £138,525.80, representing a growth of 6.4% since January.
This growth is mainly due to the greater number of lenders offering higher loan-to-value (LTV) mortgages and the availability of finance for Houses of Multiple Occupation (HMOs), which tend to be higher value properties.
Over 50% of buy-to-let offers processed by NLA Mortgages were for loans over 70% LTV – resulting in an average LTV of 67%.
Low interest rates and future predictions were reflected by the increased popularity of variable mortgage products, comprising 59% of all mortgage applications.
David Salusbury, NLA Chairman, commented:
“These findings by NLA Mortgages are very positive. Landlords provide a valuable source of housing at a time when tenants are finding it increasingly difficult to find properties to rent. Any mortgage products that encourage greater investment in the private-rented sector (PRS) should be encouraged.”
Paul Rockett, managing director of NLA Mortgages, commented:
“Wider choice and better products for landlords mean that the overall buy-to-let market is improving. Although demand for finance still outstrips supply, the level of buy-to-let lending is gradually increasing giving property investors a reason to be optimistic.”