A record pipeline has been reported by one of the leading buy to let mortgage lenders as landlords race to beat the stamp duty holiday deadline.
Paragon Bank’s BTL pipeline hit a record high of nearly £1 billion at the end of the first quarter of its financial year, which runs from autumn to autumn.
Paragon’s pipeline at December 31 - the latest data available - was £966.8m. That’s £152.8m higher than for the same period last year.
The lender expects the pipeline to convert at a faster rate over the coming quarter as landlord customers in England look to complete ahead of the March 31 SDLT deadline.
Paragon Bank’s managing director of mortgages, Richard Rowntree, says: “New business has been strong since the housing market reopened in May last year and accelerated in the three months to the end of December as landlords looked to take advantage of the Stamp Duty holiday.
“Our focus over the next two months will be on working hard to complete those transactions ahead of the window.”
He adds that specialist BTL completions - for customers such as portfolio landlords - remained robust during the first quarter of the firm’s financial year, reaching £298.7m.
Although this represents a £110.8 million reduction when compared to the previous financial year’s first quarter, it largely reflects the lagged impacts of the Spring 2020 lockdown on the pipeline and market-wide challenges facing the completion of housing transactions during the pandemic.
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