Intermediaries who took part in the Q2 survey reported the most popular reason for landlords applying for a buy-to-let mortgage was to expand their portfolios (44%). This is an increase on Q1 (40%) and also the highest level achieved in the past 12 months.
John Heron, managing director of Paragon Mortgages, said: “Levels of buy-to-let mortgage business are healthy at the moment, but could be better. The market is still being affected by the wider financial markets and factors such as the Eurozone.
“However, we have made great strides in recent months and it is encouraging to see the percentage of landlords expanding their portfolios increasing.”
The number of landlords looking to remortgage also increased in the second quarter from 31% to 32%, whilst the number of first-time landlords applying for a buy-to-let mortgage decreased from 23% to 20%.
Those intermediaries surveyed were asked for their views on the current level of demand from landlords. More than half (53%) said they would describe demand as stable, however, more than a fifth (22%) said demand was strong.
When asked more generally about the levels of mortgage business introduced during the quarter, intermediaries reported an increase to 16.7 (15.6 in Q1).
Intermediaries also gave the following breakdown of mortgage business handled in the second quarter:
• 36% - remortgages
• 26% - next-time buyers
• 20% - buy-to-let
• 16% - first-time buyers
