Enquiries from investors seeking to invest in the buy-to-let market rose sharply in the final three months of 2016, new figures show,
According to the Intermediary Mortgage Lender’s Association’s (IMLA) latest Mortgage Market Tracker, buy-to-let enquiries rocketed 47% as investors looked to beat the Prudential Regulation Authority’s (PRA) tougher buy-to-let lending rules that were introduced at the start of this year.
Lenders expect overall demand for buy-to-let mortgage lending to continue into the first three months of 2017, albeit at a lower level, as a result of tighter lending conditions and the forthcoming changes to landlords’ mortgage tax relief, which are due in April.
Peter Williams, executive director of IMLA, said: “It is unsurprising that there was an increase in the numbers of borrowers seeking expert advice in the final quarter of 2016, given that the changes to buy-to-let underwriting standards and mortgage tax relief were looming large on the horizon.
“As the layers of regulation in the market become increasingly complicated, and the number of products increase, the intermediary market continues to play a very important role in the provision of mortgage finance to a variety of borrower types.”