Paragon's Financial Adviser Confidence Tracking report, a panel-based survey of intermediaries, found that, on average, buy-to-let accounted for 17% of mortgage intermediary business during the third quarter of the year.
Of the buy-to-let mortgage business handled by intermediaries during the period, 48% was for experienced landlords to expand their portfolio and 33% was for remortgaging purposes. First-time landlords accounted for 16% of buy-to-let business, with property substitution accounting for the remaining 3%.
Nigel Terrington, Paragon Group chief executive, says:
"Landlord confidence has been building for some time and, as mortgage availability starts to widen, they are taking the opportunity to expand their portfolios. There have been a number of new lenders come to the market and, of course, Paragon has also recently resumed lending in the buy-to-let sector. This can only create some much needed competition and innovation and widen investment opportunities for landlords.
"The fact that nearly half of buy-to-let business during the period was for experienced landlords to expand their portfolios is encouraging because it is this group of landlords who will drive the growth of the market. With the growth of tenant demand showing little sign of slowing, the UK needs more properties in the private rented sector to help keep pace."
John Heron, Paragon Mortgages managing director, adds:
"These figures show how important the intermediary market is to experienced buy-to-let landlords, but also the significant proportion of intermediaries' total business that is made up of buy-to-let. A healthy and vibrant buy-to-let market is vital to both landlords and brokers, and Paragon's return to new lending will help the sector's recovery."
Paragon recently recommenced new lending in the buy-to-let market, specifically targeting professional landlords. This is an area of the market currently underserved by buy-to-let lenders and one which Paragon is well-positioned to satisfy given its experience and expertise in buy-to-let lending. Paragon's lending criteria mean it can offer professional landlords facilities that are not widely available elsewhere, such as limited companies, multi-unit blocks and Houses in Multiple Occupation. Paragon's product range includes tracker rates starting from 4.30% and fixed rates starting from 5.30%.
