The buy-to-let mortgage market is growing in confidence as landlords continue to take out larger mortgages in expectation of a continued uptick in future property prices and positive rental yields.
Data from specialist buy-to-let lender Keystone Property Finance revealed that mortgage products designed to offer exclusive rates for higher loan amounts are the most popular product among buy-to-let landlords.
More than half (58 per cent) of Keystone clients applied for the lender’s larger loans range since December 2020. The range caters for loan sizes between £250,000 and £1m and offers rates from 3.09 per cent.
Keystone Property Finance said the rise in popularity for larger loans could be attributed to landlords looking to take advantage of the stamp duty holiday and being able to afford more expensive properties as a result of the tax saving, as well as expecting a continued uptick in future property prices and positive rental yields.
The data also showed that nearly two-thirds of applications (62 per cent) for the lender’s larger loan products were from landlords in limited companies, compared to 38 per cent of applications from individual landlords.
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“Our data shows that landlords remain confident about the buy-to-let market, with the majority of customers looking to secure a larger loan to purchase their property,” said Elise Coole, managing director of Keystone Property Finance.
“Undoubtedly, the stamp duty incentive has played an important part in this and has presented landlords with an excellent opportunity to bolster their portfolios and invest in higher value properties.
“The private rental market plays a critical role for millions of people and at Keystone Property Finance, we’re committed to supporting our brokers and their landlord clients by offering a wide range of innovative solutions.”