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Buy-to-let mortgages on the up as first-time landlords boost lending Go compare with our comparison table

Buy-to-let mortgages on the up as first-time landlords boost lending

06 October 2010 / by Rachael Stiles

Buy-to-let mortgage lending is increasing as more new landlords enter the property letting market, a survey has found.

Private investor expert Richard Bowser, from the Property Investor News, believes that there are "strong indicators" that show there are more first-time landlords getting on the buy-to-let property ladder.

Buy-to-let lending in the second quarter of 2010 amounted to £2.4billion; of this amount, £1billion was remortgage lending, which, Mr Bowser says, suggests that it is new landlords who are boosting mortgage lending figures.

In the same period, the number of buy-to-let mortgages taken out totalled 24,900, a 13 per cent rise on the first quarter of the year, and a 15 per cent rise compared to the same period in 2009.

"The high level of remortgaging indicates that it is first-time landlords entering the market because they are unable to sell and need the equity to reinvest in another property to live in, while renting out their existing property," explains Mr Bowser.

Eviction figures also suggest that there is a higher level of first-time landlords in the market, according to landlord expert Paul Shamplina from Landlord Action, which specialises in assisting landlords evicting bad tenants. In the last year the company has seen a 15% rise in the number of first-time landlords instructing them to carry out evictions.

"This indicates that there are more first-time landlords in the market who are inexperienced in dealing with tenants and falling into difficulties," Mr Shamplina said.

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