Buy-to-let mortgage market is improving, says Paragon boss Nigel Terrington
According to one of the sector’s biggest lenders, buy-to-let landlords and housebuilders are more positive and are starting to apply for new borrowing.
In an interview with The Times, Paragon Banking Group boss Nigel Terrington said improved sentiment was leading to rising enquiry levels from borrowers and that this was expected “to translate to improving volumes as the year progresses”.
Paragon "expects to make new buy-to-let lending of £1.3 billion to £1.6 billion in the year and lending to builders of £1 billion to £1.2 billion. Its total book of loans increased by 1.1 per cent to £15.04 billion in the quarter."
Aaron Strutt, product director at Trinity Financial, says: "There has certainly been more interest in the buy-to-let market, and we are speaking to more landlords purchasing and remortgaging.
"Buy-to-let mortgages are much more competitively priced than they were, and some of the headline rates are lower than the residential deals. They will more than likely have percentage-based arrangement fees, which they use to bring down the rate."
Some lenders offer sub-4% rates to new or existing customers, including The Mortgage Works, BM Solutions, Virgin Money and Metro Bank.
Mortgage brokers anticipate 2024 increase in limited company buy-to-let lending
Paragon Bank research shows that just under half of mortgage brokers expect to place more limited company buy-to-let business throughout the next 12 months.
The survey of over 300 brokers highlights how a higher volume of buy-to-let mortgages written to portfolio landlords operating through limited companies is anticipated by 49% of intermediaries. In addition, 45% expect an uptick in non-portfolio limited company business during the next 12 months.
Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority.
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