A new report released this week has shown inquiries about ‘Buy to Let’ mortgages are on the increase, as consumers confidence in the market appears to be returning. The report by TMA (The Mortgage Alliance) shows that a large proportion of mortgage lenders had seen an increase in the number of buy to let enquiries over the past 3 months.
‘But to Let’ mortgages, where the customer buys a house with the intention of renting it out to someone else, were very popular during the house price boom of the late nineties and early noughties, with owners finding the house price would increase and that rental income would pay the mortgage for them. Banks have been a lot more reluctant to lend since the house price crash, and often require huge deposits.
The report also showed that with the average age of those approved mortgages rising many are turning to renting as an alternative. When asked mortgage lenders still believed that this was through necessity, rather than choice.
Phil Whitehouse, head of TMA, said: “Buy-to-let remains a key sector in the marketplace and after a few torrid years it has been good to see it rebuild some solid foundations which now appear to be translating into increased enquiry levels for the intermediary market. The emergence and return of some specialist lenders has certainly worked to instil much needed confidence in this sector, as reflected in the way respondents are more positive looking forward than they were this time last year.