Many lenders in the UK view buy-to-let mortgages as a more profitable option than other loans currently available on the market.
This is the suggestion of Lee Grandin, director at Landlord Mortgages, who explained providers are preferring to deal with proprietors with a higher margin on mortgage rates, as opposed to concerning themselves with the first-time buyer market.
The industry figure noted rental returns are currently performing particularly well as a result of properties being in limited supply.
As a consequence, it seems companies are looking to offer more attractive buy-to-let mortgage deals.
Mr Grandin pointed out: “What happens then is that the competition allows rates to go and become more competitive. We are seeing a slight improvement on rates.”
He added the trend can be beneficial for both parties – lenders stand to make more money and the landlord can take advantage of favourable rents.
Mr Grandin’s comments come in response to recent research from Paragon Mortgages that found a significant increase in buy-to-let business was experienced by more than one-third of intermediaries in the last quarter of 2012.
