There is good news for investors in the UK’s buy-to-let property business. For the first time in three years, mortgage intermediaries have forecast an increase in buy-to-let business for the next 12 months.
On average, mortgage advisers expect to do 2 per cent more mortgage business in the last three months of 2018 than they did in July-September, in line with historic seasonal changes at this time of year.
According to the latest Financial Advisor Confidence Tracking (FACT) index from Paragon Banking Group PLC, a specialist finance provider, intermediaries reported that remortgaging increased sharply up from 49 per cent during April-June to an all-time high of 57 per cent in the buy-to-let market in July-September. This trend is on an upward swing, bringing in more business to the buy-to-let market.
FACT has been tracking financial adviser sentiment since 1995 based on the number of mortgages introduced to borrowers over the previous quarter. Its statistics indicate the health of the mortgage market in the UK.
The latest data shows a stable housing market with the proportion of first-time buyer applications climbing substantially, up from 17 per cent of the total in April-June to 19 per cent in July -September 2018. Remortgaging continued to take the lion’s share of intermediaries’ business, accounting for 37 per cent of all mortgage applications.
Paragon’s quarterly Financial Advisor Confidence Tracking Index (FACT) highlights intermediaries’ general views on the performance of the mortgage market and on developing trends.