More buy-to-let landlords are applying for larger loans as market conditions encourage borrowers to buy more expensive properties and diversify their portfolios. Data from Keystone Property Finance highlights that three in five of its customers applied for a mortgage in its larger loans range, which offers loan sizes between £250,000 and £1m, since December.
Aaron Strutt, product and communications director at Trinity Financial, told FT Adviser that demand from borrowers purchasing expensive buy-to-let properties is partly due to the cheap rates. He said: “We are getting more calls from borrowers who are keen to purchase an investment property. There are a lot of landlords with £250,000-plus mortgages keen to remortgage and get the best possible deal. There is also demand from borrowers purchasing expensive buy-to-lets because of the cheap rates.”