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Mortgage intermediaries anticipate “stable” year for BTL

Paragon’s latest Financial Adviser Confidence Tracking index shows that 65 per cent of mortgage intermediaries expect buy to let business to be stable in the next 12 months.

The FACT index has tracked financial adviser sentiment since 1995, and while its rating for Q1 2018 was down from the previous quarter, at 99.3 compared to 100.8, this marks the first time that intermediaries have anticipated a stable outlook for the BTL market since the 2015 summer budget, and is a far cry from the -6 per cent growth forecast in Q1 2016.

The report also describes remortgaging making up 49 per cent of BTL applications, a domineering figure that mirrors the latest findings from UK Finance, released today.

The report also reveals that landlords are raising finance in order to add to their portfolio for the first time since 2015, albeit this proportion has only increased from 22 per cent in Q1 to 23 per cent.

Paragon managing director of mortgages John Heron says: “It’s encouraging to see intermediaries forecast a more stable outlook for buy-to-let business after such a long period of negative sentiment.

“Purchase activity continues at much lower levels, but it is interesting to see the step up in remortgage business as landlords look to maximise certainty and minimise costs as the interest rate changes start to take effect.”

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