Buy-to-let investment appetite increases intermediary mortgage demand

Buy-to-let investment appetite increases intermediary mortgage demand

Property investors seeking a mortgage to generate further buy-to-let returns are increasingly using the services of intermediaries, new research suggests.

Summary:

  • Buy-to-let landlords who require a mortgage are increasingly using intermediaries to secure the best deal
  • Many investors are now diversifying into the UK’s buy-to-let sector
  • Property investments have generated an average annual return of £22,434

Property investors keen to purchase buy-to-let investments are increasingly sourcing their finance from intermediaries.

According to new research from Paragon Mortgages, there has been a 6% increase in the number of landlords who prefer to get property finance from intermediaries as they regard it as the best way to secure a property.

The Private Rented Sector Trends survey has tracked landlord confidence over the past two decade and now 60% of landlords agree that intermediaries are valuable in finding the most opportune buy-to-let finance.

“Landlords, especially those newer to the market, recognise the benefits of using a trusted, experienced and knowledgeable broker to help source their finance. Brokers have always been key to the buy-to-let mortgage market and will continue to be, going by this research, for as far ahead as we can see,” John Heron, Managing Director of Paragon Mortgages.

The reason many investors and landlords want to secure further property assets is the current strength of the UK’s buy-to-let market. Only last month, the latest report from lettings agent networks Your Move and Reeds Rains found that due to a huge demand for rental property, tenants were paying an average of £770 a month during October – a new record.

This means that gross yields across England and Wales now stand at 5.1%, while the average property investor has enjoyed a gross return of £22,434 in 2014, which consisted of £8,404 annual rental income and an average capital gain of £14,030.

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