Nearly half of mortgage brokers are expecting to increase the level of buy-to-let business they introduce during 2011, according to some recent research from Paragon Mortgages.
Paragon’s Financial Adviser Confidence Tracking Index (FACT), a panel-based survey of mortgage brokers, found that 46% of intermediaries expect to introduce more buy-to-let mortgage business during the year. Nearly two out of 10 (17%) expect to see an increase in buy-to-let business of 10% or more during 2011 - with 29% expecting to do up to 10% more business.
The research also showed that 51% of mortgage brokers reported an improvement in the availability of buy-to-let finance during the final quarter of 2010 with 46% expecting a further improvement during the first quarter of 2011. The buy-to-let market showed signs of recovery in 2010 with the launch of several new lenders and Paragon’s return to the market.
John Heron, Paragon Mortgages’ Managing Director, said: “We are clearly now in a more buoyant phase for the buy-to-let market - 2010 was the turning point for the sector and it enters this year on the front foot and with confidence. As approximately nine out of 10 buy-to-let mortgages are introduced via intermediaries, it is extremely encouraging that nearly half of brokers expect to increase business levels in 2011. This in turn, should attract a greater number of lenders and borrowers to the market.
“Intermediaries are encouraged by the growing number of lenders in the sector, which is stimulating much-needed competition and product innovation. Meanwhile, there is a clear shift in UK housing trends towards privately renting and landlords are looking to benefit from the excellent levels of tenant demand and strong rental yields,” added Heron