A growing number of buy-to-let landlords are looking to take advantage of cheaper borrowing rates, growing demand from renters, and the existing stamp duty holiday by adding to the property portfolio, new figures suggest.
Mortgage approvals rose sharply in August to hit their highest monthly level for almost 13 years, fuelled by the and a desire to purchase properties outside Britain’s large urban centres.
Ultra low borrowing rates and the government’s stamp duty holiday on home purchases, due to expire next March, also helped to push mortgage approvals from 66,300 in July to 84,700 in August, according to the latest data from the Bank of England, their highest level since October 2007.
Property buyers at all price tiers are digging deep to come up with a larger deposit to secure a stamp duty saving, and although many lenders may be treading with caution, they continue to make hay while the sun shines, according to Hugh Wade-Jones, managing director of Enness Global Mortgages.
He commented: “This trend will continue to be driven forward by the high-end market who have far fewer obstacles in their way when obtaining a mortgage but still recognise that investing now makes good financial sense.”