Large growth in buy-to-let mortgage activity

 

LARGE GROWTH IN BUY-TO-LET MORTGAGE ACTIVITY
Article date: 13/10/2005 : 14:26:11

Landlords have stepped up their buying activities as a Mortgages Direct study shows a 50 per cent increase in their mortgage activity in September.

This means buy-to-let investors make up 12 per cent of people wanting to get a mortgage, reports the financial website in2perspective.com.

Peter Gladdy, director of Mortgages Direct, said: "The renting market is fairly buoyant in this current climate, with many potential homeowners sitting on their hands, waiting to see which way the prices will go and therefore opting to rent instead.

"Landlords are responding proactively to the demand and to the upward trend of rents. The established investor, who takes a long-term, professional approach to buy-to-let, continues to buy selectively and carefully."

The study also found that mortgage consumers are not confident interest rates will fall from 4.5 per cent, due to an increase in the number of fixed rate deals being taken up and a six per cent decrease in tracker mortgages last month.
 
 
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