More than half of mortgage brokers have seen an increase in buy-to-let purchase business in recent weeks, according to new research from broker forum Cherryplc.co.uk.
The survey, carried out with Click2Check, found that 57% of intermediaries have seen demand for buy-to-let purchase deals increase, compared to just under 12% who reported an increase in demand for capital raising on a remortgage.
The study found there had been an increase in the number of clients with more specialist requirements. Almost one in ten (8%) brokers saw a jump in demand for HMO purchase loans, while almost 4% have seen a rise in enquiries for lending on both multi-unit blocks of flats and holiday lets.
There has also been a rise in short-term lending popularity, with 8% of advisers working with more clients on sourcing bridging loans for refurbishment tasks.
Donna Hopton, director at Cherry, said it was clear that there has been a spike in buy-to-let activity in recent weeks.
She explained: “Whereas the buy-to-let market has been dominated by remortgage business in recent years, it is purchase enquiries that are currently keeping brokers busy. The window of opportunity for reduced Stamp Duty Land Tax will certainly be helping to drive this demand, but we are seeing that the market is generally buoyant, which is a positive sign for advisers, and the economy.”
Jeff Knight, director of marketing at Foundation Home Loans, pointed to recent research which had suggested confidence among landlords is now higher than it has been in the last few years.
He continued: “This presents a great opportunity for landlords and it’s no surprise that many have seen this period of reduced Stamp Duty as an opportunity to grow their portfolios.”
By John Fitzsimons
Source: Mortgage Finance Gazette