Highlights of the latest buy-to-let mortgage trends from ludlowthompson Mortgages include:
- The average loan size jumped 15.6% in Q1, up from £132,705 in Q4 2011.
- Investors borrowed at a higher loan to value (LTV), up 2.9% to 66.% in Q1 2012.
- The average fixed rate for buy-to-let borrowing crept down 0.11% from 4.93% in Q4 2011 to 4.82% in Q1
Demand for variable mortgages
During Q1 2012, 59% of buy-to-let mortgage applications received by ludlowthompson Mortgages were for variable rate products, up from just 48% in Q4 2011.
Stephen Ludlow, Chairman of ludlowthompson, says: "The noticeable increase in the proportion of landlords opting for variable rates indicates that many feel more confident that interest rates are likely to remain low for some time to come, with some in the City predicting that the base rate may not rise until 2015."