13 Oct

One in five mortgages is for buy-to-let properties

One in five mortgages is for buy-to-let properties

Buy-to-let mortgages accounted for one in five loans handled by financial advisers in the third quarter of 2010, a report has revealed.

According to Paragon, 17 per cent of mortgages were taken out by buy-to-let customers in the three months leading to the end of September 2010.

Research from Paragon's Financial Adviser Confidence Tracking report revealed that during this period, 48 per cent of buy-to-let mortgages were taken out by experienced landlords to expand their portfolio, while 16 per cent were for first-time landlords.

Chief executive of Paragon Nigel Terrington said this could be because "landlord confidence has been building".

He stated: "As mortgage availability starts to widen, they are taking the opportunity to expand their portfolios."

Mr Terrington also noted that a number of lenders have started to offer buy-to-let mortgages, which has helped encourage competition and make investing in properties more appealing for landlords.

Last week, The Mortgage Works released new products for landlords to give them a wider choice of "innovative and common sense alternatives". ADNFCR-1222-ID-800114571-ADNFCR

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