The index tracks the product choices and demographics of landlords arranging buy-to-let mortgages via TBMC’s specialist processing unit.
It shows that the buy-to-let mortgages offered in Quarter 2 comprised:
Average loan size: £109,712
Average loan to value: 64.5%
Average chosen fixed rate: 4.80%
Average chosen tracker rate: 4.31%
For the third quarter in succession, TBMC saw an increase in the proportion of applications for buy-to-let remortgages – 45% in Q2 2010 which is up from 41% and 31% in the previous two quarters. Although purchases still account for over half of applications received, the availability of some competitively priced products in the market place, including specific remortgaging products offering free valuation and free legal fees, has enabled landlords to remortgage more readily according to TBMC.
Andy Young, chief executive at TBMC, said: “There have been signs in the last quarter that the buy-to-let mortgage market is starting to recover with a few new lenders entering; 80% loan to values have made a comeback and it is possible again to obtain finance for light refurbishments, HMOs and via limited companies.
“Some commercial lenders are becoming more innovative with their buy-to-let offering and specialist buy-to-let lenders, reliant on the money markets for funding lines, are also talking about realistically returning to lending sometime this year.
“This is good news for property investors and should inject some much needed competition into the buy-to-let mortgage market.”
