More than a third of mortgage intermediaries saw an influx of buy-to-let business in the final quarter of 2011, according to new research from Paragon Mortgages.
The survey also found that on average 23.3% of an intermediaries’ business was now buy-to-let, compared to 19.3% a year ago.
The Financial Adviser Confidence Tracking survey (FACT) asked intermediaries what the most popular reason for landlords obtaining a buy-to-let mortgage was in Q4. Intermediaries said that four out of 10 landlords were taking out buy-to-let mortgages in order to expand an existing property portfolio, whilst a third of landlords were taking advantage of greater competition in the sector to remortgage. On average intermediaries saw an increase in their buy-to-let business of 4.5% in Q4.
Those surveyed also reported an increase in first-time landlords applying for their first buy-to-let mortgage, rising from 19% in Q3 to 23% in Q4. This continues the improving trend that has been recorded with the proportion of first-time landlord business now more than double the levels at the peak of the financial crisis.
When asked for their views on what the likely availability of buy-to-let finance would be in the first quarter of 2012, half of intermediaries said that they thought availability would improve and 41% said it would remain the same.
John Heron , managing director of Paragon Mortgages, said: “The final quarter of 2011 was for many intermediaries a successful one