Four in 10 mortgage brokers reported an improvement in the availability of buy-to-let mortgages in Q3 2010, Paragon Mortgages research shows.
Paragon’s Financial Adviser Confidence Tracker report, a panel-based survey of mortgage brokers, reveals 43% of brokers believe the availability of mortgage finance improved in the three months to the end of September.
The period coincided with Paragon Mortgages’ return to the buy-to-let market, an improvement in the number of products available and an easing of criteria.
Paragon’s research showed that 38% of brokers said buy-to-let mortgage finance availability remained unchanged during Q3, whilst 19% said that it had worsened.
Looking forward, a significantly higher proportion of intermediaries believe buy-to-let mortgage availability will improve further during the next quarter, 35%, than deteriorate, 7%.
But 58% believe it will remain at current levels.
John Heron, managing director of Paragon Mortgages, says: “The number of buy-to-let mortgages has been rising in recent months as lenders come back to the market or new lenders are launched, and criteria has also improved slightly. This is reflected in intermediaries’ view of availability of buy-to-let finance, with more than double the number of brokers saying that it has improved rather than deteriorated.
“However, the market is still significantly below its July 2007 peak and access to finance remains difficult for professional landlords in particular. This is why Paragon’s return to the sector is significant for this market as our service is designed to specifically cater for professional landlords.”
Paragon began new lending in the buy-to-let market in September, specifically targeting professional landlords.