The total value of Buy-To-Let Mortgages reached £4.2m as the number of landlords remortgaging complex buy-to-let properties increased by 2% last year, according to research by Mortgages for Business. Similarly, the number of landlords refinancing houses in multiple occupation rose by 25% in 2012.
According to David Whittaker, managing director of Mortgages for Business, this increased popularity of buy-to-let mortgages is mainly caused by difficulties first-time buyers face when trying to secure a mortgage. Thus, high tenant demand and flat property prices enticed more landlords to increase their capital; 8 buy-to-let properties were owned by an average landlord in the final quarter of 2012.
While number of buy-to-let lenders rose, the average number of available products fell by 5% from Q3 to Q4 in 2012 which may have been due to lenders withdrawing some deals in preparation for new product launches in 2013. Even though majority of landlords felt like lenders weren’t doing enough for them in 2012, it is predicted that 2013 will see a further increase in the availability and popularity of buy-to-let mortgages.