A spike in the demand for buy-to-let mortgages could spell a strong start to the new year for the private rental sector.
- Is buy-to-let a good idea?
- How landlords can tackle the UK interest rate rise in three simple steps
- What is a buy-to-let mortgage and do I need one?
- What is landlord liability insurance?
Confidence in buy-to-let at a two year high
Despite falling sharply in 2016, the appetite for buy-to-let mortgages rose during the third quarter for 2017, up one per cent on the previous quarter.
Crucially, confidence amongst mortgage lenders has reached its highest level since 2015, according to the Financial Advisers Confidence Tracking (FACT) Index report.
The news will be greatly welcomed by landlords, given how many negative stories about buy-to-let have come out over the past 18 months. Despite the naysayers, the private rental sector is shaping up for a strong opening gambit in the first quarter of 2018.
‘Finely balanced’ buy-to-let market has stabilised
John Heron, managing director of mortgages at Paragon, suggested this data showed that the buy-to-let market has stabilised after a rocky few years.
“A wide variety of recent data on housing has pointed to a market that has been finely balanced” he said. “Low transaction numbers have been bolstered by higher numbers of first-time buyers, house prices outside London have been creeping up and landlord activity has stabilised.
“These trends are confirmed by our latest intermediary survey with confidence now at the highest level for some time. Despite a rather uncertain environment, intermediaries are seeing higher levels of remortgage activity and at least stable demand from buy-to-let landlords” he added.
Tougher buy-to-let regulations
The rise in appetite for buy-to-let mortgages comes despite the tougher regulations introduced in September this year. In order to get a mortgage, you now have to provide details of your whole portfolio.
But if the above figures are any indication, these particular regulatory changes are not putting investors off.
Thinking about taking out a buy-to-let mortgage in 2018? Check out our guide to the some of the best buy-to-let mortgages in the UK to see how yours stacks up.
Get set with tailored landlord cover
Over 100,000 UK landlord policies, a 9/10 customer rating and claims handled by an award-winning team. Looking to switch or start a new policy? Run a quick landlord insurance quote today.
