Of these, 63% of landlords will need to remortgage existing properties to fund their expansion.
The survey also shows that 62% of investors believe lenders are not doing enough to support landlords. Of these, one in five think lenders should reduce their product fees, 18% believe lenders should increase LTVs and 15% think they should assess more applications on a case-by-case basis rather than using credit scoring.
While four fifths of property investors intend on investing in vanilla buy-to-let property over the next six months, 22% plan on expanding their portfolios with houses in multiple occupation and 15% with multi-unit freehold blocks. In addition, 14% intend on investing in commercial or semi-commercial property.
David Whittaker, managing director at Mortgages for Business, says: “Although overall mortgage and lending to first-time buyers is finally starting to increase, landlords remain confident about the future of the private rental market and plan to expand their portfolios over the coming months.
“However, more and more investors are exploring which options will give them the best returns on their investment. While vanilla buy-to-let properties remain popular, more complex deals are offering higher yields on average and are growing in popularity, particularly because of the shortage of housing stock currently on the market.”