11
Jun
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.
