UK residential market investors are increasingly opting for buy-to-let mortgage owing to healthy returns. Specialist provider of finance, Paragon Banking Group, reported that its buy-to-let mortgage lending increased by 21 per cent between Oct 2017 and March 2018, as investors are favouring rental properties.
According to a latest report from the bank, its well-established buy-to-let lending increased to £671 million during the six months under review.
“Half-year results highlight a marked shift towards a concentration of buy-to-let activity among more professional investors, with the proportion of advances made to corporate and complex landlords in the first six months reaching 72% compared with 60% last year. Paragon saw a significant increase in customers opting for new buy-to-let mortgages with an initial fixed rate period of five years,” the bank said.
Paragon’s mortgage lending data shows that investors continue to show faith in the UK residential property market, especially the buy-to-let category, which has been growing. The growth in rental values has been 4 per cent consistently, delivering a healthy ROI to investors.
The demand for buy-to-let property has picked pace, especially in London’s commuter belt, as working professionals and first-time buyers, who are saving for their deposits, are preferring rental homes in these areas.
Paragon saw a significant increase in customers opting for new buy-to-let mortgages with an initial fixed rate period of five years