The buy-to-let market in the UK continues to remain buoyant with the demand for mortgages picking pace. One of the main contributors for this demand is the steady rental income for landlords.
The Financial Adviser Confidence Tracking (FACT) Index for the third quarter (July-September 2017) brought out by Paragon, a leading provider of buy-to-let mortgages for landlords, shows a significant increase in the number of mortgages taken by landlords.
“The average number of mortgages introduced per advisers’ office in Q3 2017 was 24, up 9% on Q2 2017 and 8% on the previous year. This is the third highest recorded figure since the 2008 financial crash and maintains the long-term recovery from a record low of 14 in 2009,” the Index said.
Incidentally, 9 per cent of mortgage advisers described landlord demand as ‘strong’ or ‘very strong’ during the third quarter of 2017, up from 6 per cent in the previous quarter. First-time buyers also saw a 1 per cent increase on the quarter and maintains a modest long-term upward trend over the last decade.
Mortgage advisers have forecast growth for the sector in the last three months of 2017. They expect to do 2.4 per cent more mortgage business during October-November-December 2017.
The Financial Adviser Confidence Tracking (FACT) Index has been tracking financial adviser sentiment since 1995 based on the number of mortgages introduced to borrowers over the previous quarter.