Buy-to-let market encouraged by good mortgage deals
More inventive and competitive mortgages are the main reason for the improvement in the buy-to-let market, according to more than half of buy-to-let intermediaries questioned.
The results from Mortgage Trust’s October Buy-to-Let Intermediary Forecast also pointed to strong rental demand and improved overall confidence in the housing market for the increase in landlords buying property.These factors have led to the mortgage brokers believing more people will want to become buy-to-let investors, with business from first-time landlords expected to reach 17 per cent for the first time in seven months.
Nicola Severn, marketing manager at Mortgage Trust, said the forecast "shows that intermediaries welcome further product development and believe that healthy competition in the market serves to boost the sector".
"However, they are aware that the long-term future of the market is first and foremost dependent on factors such as steady rental demand and a healthy interest rate environment," she added.
Another important factor is interest rates, as property purchases by landlords increased by six per cent in August after interest rates were cut to 4.5 per cent, and 47 per cent of intermediaries believe they will fall during one of the next three months.
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