Posted at 07:15h
Property Wire 14 April 2016
The number of buy to let mortgage products available in the UK increased significantly in the first quarter of 2016, particularly for landlords with a limited company.
The introduction of more products targeted at limited company borrowers saw the average product numbers for buy to let mortgages increase from 963 in the final quarter of 2015 to 1,105 in the first three months of 2016.
Data from the latest index from Mortgage for Business also shows that remortgages yet again outstripped purchases in all categories with the exception of HMOs, where purchase numbers were slightly higher.
‘With tenants looking for less expensive accommodation and landlords looking for higher yields it is no surprise that the number of HMO purchases has risen in the last quarter,’ said David Whittaker, managing director of Mortgages for Business.
‘Even though remortgage transactions were higher this is not to say purchase numbers were down. All types of residential investment showed a marked increase in the number of purchase transactions as investors rushed to beat the 3% stamp duty surcharge deadline,’ he pointed out.
The index report also shows that yields for semi commercial property also rose in the first quarter of 2016 making it the second highest yielding property type.
Whittaker predicts that the number of landlords purchasing semi-commercial property is set to rise in the coming months as mixed use properties are technically classed as a commercial premises and as such will not be liable for the 3% stamp duty surcharge.