A new Index which tracks BTL loan size, property value, loan to value and yields and focuses on the previously unreported sub-sectors of the more complex buy to let mortgage transactions, specifically Houses in Multiple Occupation and multi-unit freehold blocks has been launched by Mortgages for Business, called the ‘MFB Complex Buy to Let Index’.

Results will be published quarterly based on transactions carried out via the company in the previous three months.

David Whittaker, managing director at Mortgages for Business said: “Client feedback throughout last year indicated that active professional landlords and residential property investors are keen to understand more about market dynamics and key trends. While they read journals and articles from the Council of Mortgage Lenders and other sources, they believe that the data is too general and historic by the time it is collated and analysed.”

Results from the first index give a snapshot of the market in 2010

- Yields for Houses in Multiple Occupation were 8.7% - almost double those of the more ‘vanilla’ buy to let properties

- Average loan size for an HMO property was £287,800 with a loan to value of 61 per cent.

- Average loan size for multi-unit freehold blocks was higher, at £470,900 with a loan to value of 57 per cent

- The average yield was 5.7%, lower than for HMO properties but still a better return on investment than vanilla buy to let purchases