11 Jun

Buy-to-let mortgage lending for first-time landlords 'rises'

Buy-to-let mortgage lending for first-time landlords 'rises'

The proportion of first-time landlord home loan business for Paragon Mortgages rose during the first three months of this year.

According to the firm, such transactions accounted for 21 per cent of broker's buy-to-let trade during the quarter.

This was the second consecutive period in which such growth was recorded, it noted.

Conversely, the proportion of business from landlords who were extending their portfolios fell from 52 per cent during the final three months of 2009 to 45 per cent between January and the end of March 2010.

Responding to the figures, managing director of the firm John Heron said: "It is positive that first-time landlords are coming back into the market."

However, as the stock of private rented sector property comes under increasing strain, it is important that banks and buildings societies encourage investors who have a long-term approach to their projects, he added.

Recently, the Council of Mortgage Lenders predicted that the level of gross mortgage lending in the UK will add up to around £150 billion this year.

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