New syndicated research* for Precise Mortgages, one of the UK’s leading specialist lenders**, reveals landlords’ acquisition plans for the year ahead, with the North West expected to be the busiest region.
The study by BDRC found more than one in five landlords (22%) plan to buy in the North West followed by the South East and Yorkshire & The Humber which 16% of landlords are targeting for new properties. Regions reporting a higher proportion of buyers than sellers in the next 12 months included the East and West Midlands plus the South West and North East.
More than two out of three (68%) of buyers plan to fund their next purchase with a buy to let mortgage while just 18% will release equity from existing properties. Demand for mortgages is similar across all portfolio sizes although 23% of landlords with 11-plus properties will release equity.
Brokers continue to dominate the market – almost 73% of landlords used a mortgage broker or intermediary to arrange their last BTL mortgage, while 19% went direct to a lender. Landlords with six to 10 properties were the most likely to use brokers at 79% while 29% of landlords with one property dealt directly with a lender.
Precise Mortgages’ range of buy to let mortgages offers rates from 1.99% for a 2-year fixed rate and 3.19% for a 5-year fixed rate. Its top slicing feature is available across the entire product range offering landlords greater flexibility on loan size and the ability to choose from a wider range of solutions.
Alan Cleary, Managing Director of Precise Mortgages, said: “The increasing professionalisation of the buy to let market means landlords are becoming more focused and selective in where they buy properties and how they fund their purchases.
“Recent rate cuts across the buy to let market are highlighting the opportunities to increase portfolios and profitability as well as underlining the need for expert advice from brokers particularly among landlords with bigger portfolios.”
Full details of Precise Mortgages’ range of buy to let products are available at https://www.precisemortgages.co.uk/BuyToLet
* BDRC Q3 2019 Landlords Panel syndicated research report. Fieldwork was conducted online between 6th and 20th September 2019 among a sample of 888 National Landlords Association members
** BVA BDRC Project Mercury Report Q1 2019