Investor confidence starts to grow
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Purchase activity in the buy-to-let market increased slightly in Q4 2009, as investors start to regain confidence in the market.
The Business Mortgage Company’s latest Landlord Profile Tracking Index shows buy-to-let purchases represented 69% of new applicants in Q4 2009, compared with 66% in Q3 2009.
In Q4, 70% of applications also opted for a tracker rate, compared with 45% in the previous quarter.
Andy Young, chief executive officer at TBMC, says: “Most landlords are applying for buy-to-let mortgages to expand their portfolios, which demonstrates that confidence in the market remains strong.
“However, we also know that with interest rates so low, many landlords are choosing to stay on their reversionary rates rather than remortgage.”
