Buy-to-let mortgage providers and landlord insurance brokers are experiencing record levels of interest in their products as property investors continue to pour into the housing market.
Figures from a report by Paragon mortgages show that mortgage brokers allied to their products saw an increase in buy-to-let mortgages of over 35%, while brokers across the UK now say that 1 in 4 mortgages are taken out by prospective landlords. The figures show a remarkable change in the demographic of people taking out mortgages in the UK and really epitomise the rapid change in financial fortunes of the UK population.
Interestingly the figures also show that whilst professional landlords are taking advantage of better mortgage deals to either add to their portfolios or to re-mortgage on better terms, it is the first-time buy-to-let buyers who are really making their presence felt. According to Paragon there are twice as many first-time buy-to-let investors buying mortgage products than there was just four short years ago.
Managing Director of Paragon, John Heron, said, “The final quarter of 2011 was for many intermediaries a successful one, with increased optimism about the coming months and a steady improvement in the level of buy-to-let business being written. With record levels of rental demand being reported it is good to see that existing landlords are increasing the size of their portfolios but it is particularly notable that the proportion of new landlords is also increasing.”
The burgeoning property investment market has also seen buy-to-let insurance providers find innovative ways of marketing their products and just like mortgages the number of insurance options for landlords is now at a record high, with companies often offering special deals for customers who organize their cover online or over the phone.