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Abundance of Mortgage Options Boosting Landlord Confidence

April 11, 2014 | Landlord News  

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Nearly half (44%) of landlords are of the opinion that finance is easily available should they decide they want to expand their portfolios, according to a survey by Paragon Mortgages. This is the highest proportion they have ever recorded, and represents a 2% increase since the final quarter of 2013.

With over 200 buy-to-let mortgage lenders all vying for business, it is little wonder why landlords are optimistic in this regard. In an effort to appeal to a largely older demographic, some lenders are relaxing their criteria, such as dropping upper age limits from their buy-to-let range.

The resurgence in buy-to-let borrowing over the last 24 months has been strong, with mortgage lending to landlords rising by 44%, according to the Council of Mortgage Lenders.

The number of property purchases financed by landlord loans has increased by exactly one third, from 6,200 to 9,300, between 2011 and 2013.

But not only is lending more easily available, rent arrears are down, and yields are up. Research by LSL shows that total annual returns from rent and capital gains on an average landlord property increased to 9.7% in February, nearly double that recorded the previous year (5.4%).

 

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