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UK Buy To Let Mortgage Lending Growth Announced


Thursday, August 7, 2014

Significant Growth Of Buy To Let Mortgage Lending

Significant Growth Of Buy To Let Mortgage Lending

Significant Growth Of Buy To Let Mortgage Lending

If media reports are to be believed, the UK may be beginning to witness a slowdown in residential property sales outside of London, but the UK’s private rental sector is booming across the country, as property investors and portfolio landlords continue to expand their rental property empires.

According to data obtained from the Paragon mortgage group’s interim management statement, there has been a considerable upturn in net UK buy to let mortgage lending over recent months, with the company recording an annual increase of 94.25% of buy to let mortgage advances offered by the firm to borrowers worth a staggering £456.3 Million (GBP) for the second quarter of the year, from April 1st to June 30th 2014.

John Heron, managing director of Paragon Mortgages, stated: “The last quarter was very successful for buy to let mortgages and the business continues to grow and the credit quality remains outstanding.”Overall, the group reported excellent operating profits for the second quarter of the year, up 16.6% to £88.3 Million (GBP), demonstrating the continued strong demand for buy to let mortgage products from property investors and portfolio landlords.

The announcement follows recent research that found 94% of UK private rental sector (PRS) landlords believed that demand for rental properties in the UK is still growing.

Sim Sekhon, spokesman for the UK’s leading suppliers of specialist products and services to landlords and the lettings industry, Legal 4 Landlords commented on the announcement, stating “There has been a significant increase in the volume of enquiries about specialist buy to let mortgage products from landlords through our website and partner agents and there is little sign that the interest will diminish any time soon. The UK’s private rental sector is currently booming as landlords discover the wealth of additional products and services to aid them operate their property businesses smoothly as well as helping them to protect their rental income”.

The number of buy to let mortgage products available to borrowers has increased by 43% according to economist website – Moneyfacts, with 665 buy to let mortgage products on the market, a post credit crunch high.

Despite the increase in the number of currently available buy to let mortgage products, the volume of choice is still a long way off the pre-credit crunch figures where there were 3,662 buy to let mortgage products to choose from.


This was written by Mike Clarke. Posted on at 11:30 am. Filed under Buy To Let. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.