The latest data from Charcolonline, the online mortgage broking service, shows online buy-to-let deals increased from 14% in July to 17% last month, illustrating that more buy-to-let investors are heading for the internet when looking for the best deals.
At the same time, first-time buyers edged down from 15% in July to 11% in August, a figure still slightly up on the 10% average of first time-buyer deals done online in the last six months. However, overall online mortgage applications in August were up 17% on the previous month.
Drew Wotherspoon at John Charcol says: “I think it is clear that more and more borrowers are becoming very astute in the way they arrange their mortgages. Buy-to-let, after all, is about yields and profit, so arranging a mortgage online makes logical sense. We are dealing with experienced professionals who know and follow the market, so I am not surprised that a greater proportion are going online to arrange finance. We also see that first-time buyers are a little shy to buy, but this obviously further accentuates the good market for rentals. Combine this with a still sluggish property market and it makes for an excellent environment for the canny buy-to-let investor.”
The average mortgage amount applied for online last month was 151,272 to finance a property value of 257,456, up 1% on July but 18% less than the average property value in June. Therefore the average loan to value in August was 59%, allowing borrowers access to a wide range of market leading deals.
Charcolonline data also shows that remortgaging still accounts for the majority of online borrower activity with 54% of applications last month, up from 52% in July and a six month average of 53%.
It reveals that home movers made up 18% of online mortgage deals in August up from 16% in July and 14% in June. The average age of the online borrower last month was 37. And whie 74% of borrowers were male, 52% of mortgage applications were made jointly.
The data also shows the vast majority (63%) of mortgages done online were repayment, with 7% being part repayment/part interest only and the remaining 30% interest only.