As 2017 began, buy-to-let mortgages faced some worrying figures. Activity had fallen by nearly 50% from 2016, with an average of 6,000 purchases made per month.
Data obtained by the Council of Mortgage Lenders found that the number of landlord purchases involving a buy-to-let mortgage was significantly down on February 2016. Compared to the 10,300 purchases of the previous year, just 5,300 were made in April 2017.
Data obtained in the Financial Advisers Confidence Tracking (FACT) report shows that buy-to-let mortgages were up 1% on the previous quarter.
What's more, confidence in buy-to-let lenders has reached at a two year high. Therefore, the private rental sector is expected to have a strong start to the first quarter of the new year.
Experts believe the buy-to-let market is finely balanced. While sale numbers are down, increased numbers of first time buyers have helped to stabilise the market.
Although tougher regulations were introduced in September (details of your portfolio must be provided before you can get a mortgage), buy-to-let mortgages continue to prove popular. This is very promising for the future of buy-to-let, despite its rather uncertain environment.
If you have any questions regarding these changes, or would like to find out more information, please get in touch. Andrew Bowls is our head of buy-to-let mortgages and will be happy to answer any of your questions. Please email [email protected] or give us a call 01603 340 644.