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Buy-to-let mortgage lending figures ‘are a concern’

Take-up of buy-to-let mortgages slowed in June as economic and political uncertainty caused some buy-to-let investors to adopt a ‘wait and see’ approach.

There were 5,300 new buy-to-let home purchase mortgages completed, 3.6% down on the same period last year, while buy-to-let remortgaging dropped by 0.8%.

This was fuelled in part by a marginal fall in the number of fixed-rate mortgages coming to an end and the growing popularity of product transfers, according to the latest data from trade body UK Finance.


Richard Pike, sales and marketing director at Phoebus Software, said: “Given that the country has been in a state of flux for over three years it is hardly surprising that the figures year-on-year have dipped across the mortgage market sectors. 

“When you consider that the mortgages in these June figures were more than likely for applications made in or around the original time we should have been leaving the EU, it is more surprising that the figures weren’t even lower. 

“The buy-to-let figures are a concern, but as the next deadline for Brexit nears, there may be some light at the end of the tunnel. One way or another we will have a resolution and, despite the government’s best efforts to curb buy-to-let, a resolution should mean that investors that have been holding fire will know whether or not investing in property is once again a viable proposition. 

“We may be a nation of homeowners but, when buying a home is so expensive, the need for rental accommodation remains as important as ever.”

David Copland, director of mortgage services at TMA, thinks that the second half of the year could prove busier for mortgage lenders as a number of deals are expected to come to the end of their terms.

He commented: “£90.2bn worth of residential mortgages and almost £8.3bn worth of buy-to-let deals will come to the end of their terms between June and October this year,” said Copland.

“This represents a huge opportunity for advisers to talk to their customers about remortgaging, and to help them lock in the best deals available to them.”

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Poll: Are any of your existing buy-to-let mortgage deals due to expire this year?


  • John Keith

    It's not Brexit, or the lack thereof that is the cause of reduced numbers of buy-to-let mortgage applications, rather the constant attack on small portfolio landlords, through Section 24 tax changes where individuals are now taxed on turnover instead of profit, combined with council tax being charged per room on HMO's and taking away Section 21 rights to remove tenants. Once the government has driven away large numbers of landlords from the private rental sector, I hope they have a back-up plan to house all of these extra tenants, but I doubt it.

  • icon

    Nothing to do with Bexit.
    Its solicitors who take too long its EAs who dont follow up and its surveyors who down value most of the time to cover themselves and then the mortgage companies taking much too long.
    Plus Boris could reduce SD so purchasers are hanging on.


    When you instruct a solicitor then he (she) is working for you, I have agreed a purchase on a Monday and completed on the Friday before now, solicitors don't like it but you are the one calling the shots

  • icon

    Agree. When i was with Chase UK we packaged over 100 mortgages a month.
    We had solicitors knocking our door for business but we only dealt with those that would respond with Moratorium within 24 hours, exchange within 7 days if appropriate and Complete with no chasing within 28 days or earlier.
    Now we have solicitors asking for Reports 4 times!!!! After sending Reports 4 times, from 4 different persons at solicitors firm.


    Yes sadly times and people change, I had a brilliant solicitor for over 30 yrs one of the boys, he spoke our language, sadly he retired a couple of yrs ago

  • icon

    It's always been interesting to me, that property has so many professionals in.
    Solicitors, Surveyors, Banking, IFAs, Tradesman.....
    It's the worst and least professional sector I've worked in, slow, lack of customer service, always chasing people to their job.
    Yet, they all want massive fees for shockingly poor performance.


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