October 11, 2011
Purchases of buy-to-let mortgage products soared by 25% over the past six months as lenders offering higher loan-to-value (LTV) mortgages increase, the National Landlords Association has reported (NLA). A survey by NLA Mortgages found that the number of buy-to-let schemes provided during the second quarter of 2011 grew by 25% when compared to the first three months of the year, while average loan sizes increased by £2166 to £138,525.80, up 6.4% since January. Experts believe such growth is due to more lenders offering LTV mortgages and better availability of finance for Houses of Multiple Occupation (HMOs). “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,” said David Salusbury, NLA Chairman. “Any mortgage products that encourage greater investment in the private-rented sector (PRS) should be encouraged.” Looking to get involved in the letting market? Contact our housing experts today and we’ll give all you need to make a success of the current PRS boom.