22% of intermediaries' BTL business from first-time landlords

Intermediaries revealed that 22% of their buy-to-let mortgage business in Q2 was from first-time landlords, the same level reported in Q1 and an increase on the 20% level reported for the same time period last year.

The percentage of cases from landlords looking to grow their rental portfolios increased during the quarter to 38% from 33% in Q1, whilst the number of landlords looking to remortgage fell from 33% to 28%.

Intermediaries were also asked whether they had any cases of clients looking for Let to Buy mortgages, 9% reported that they had dealt with such cases.

More than half the intermediaries surveyed reported an improvement in the availability of buy-to-let finance, including 10% who said that, in their view, availability had improved significantly.

John Heron, Director of Mortgages, said:

"We have seen over the past two years a steady rise in the number of first-time landlords entering the market. It would seem that an investment in property is increasingly attractive against a background of low returns on cash and volatility in global markets.

“With perceptions shifting in terms of the improved availability of buy-to-let finance too, the lending industry is in a good place to support the ambitions of both new and experienced landlords.”