Mortgage Finance Gazette - Buy-to-let ‘sell-off ends’ as loans jump 47% to £10.5bn in Q1: UK Finance
This is up 38.6% by volume and 46.8% by value, compared with the same quarter a year ago, with some property professionals hailing this as the end of “the big landlord sell-off”.
The average gross BTL rental yield in the first quarter of this year was 6.94%, compared with 6.88% 12 months ago.
Trinity Financial products and communications director Aaron Strutt says: “With so many people struggling to get on the property ladder and a real shortage of affordable rental properties in many areas, landlords are keen to buy and benefit from the higher rents.
“BTL mortgage rates have been coming down for quite some time and they are more affordable. There are landlord rates available from 2.5% with 3% arrangement fees, and 3.75% rates with £1,499 fees.
“Many BTL rates are cheaper than the residential deals at the moment as the lenders try to stimulate the landlord sector.
“Many landlords are still converting their portfolios into companies as they seek to be more tax-efficient. They are also switching lenders to get better deals.”
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