Recent figures released from a leading mortgage company indicate that there is no better time than the present to become a buy-to –let landlord. Figures from Paragon Mortgages suggest that now is a great period to take out an investment mortgage.
The recordings presented by Paragon Mortgages found that over a third of brokers increased their buy-to-let revenue in 2011. In addition, the findings projected that over 25% of mortgages are buy-to-let deals. up by over 5% on one year ago. Paragon’s figures also suggest that around 40% of landlords were utilizing buy-to-let mortgages to enable them to add to their existing portfolio.
Another interesting statistic from the Paragon report showed an increase in the number of first-time landlords. This number has risen by roughly 4% in the final quarter of 2011. The rising numbers could be attributed to a number of factors. Most probably, the two main contributors to the increase are falling interest rates and the rising rent prices, especially around the capital.
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Reasons for optimism
The positive end to 2011 gave hope that 2012 could be another prosperous year for the buy-to-let industry. Managing director of Paragon, John Heron, certainly believes that this will be the case: – ‘The final quarter of 2011 was for many intermediaries a successful one, with increased optimism about the coming months and a steady improvement in the level of buy-to-let business being written.’
Mr Heron also commented that, ‘it is particularly notable that the proportion of new landlords is also increasing.’ With the economy showing shoots of recovery, there is no reason to suggest that the buy-to-let industry could once again record better figures in 2012.