Buy-let predicted to grow strongly this year

Mortgage brokers are predicting strong growth in the buy-let market this year, based on statistics for 2006.

According to Mortgage Trust, brokers in 2006 saw their buy-let business increase by an average of just under 20 per cent.

This means that buy-let mortgages now account for 11 per cent of all mortgage lending, the company added.

John Heron, managing director says that the market saw “buoyant growth” last year and he says that an increasing number of landlords “are building up their portfolios”.

“Intermediaries have their fingers on the pulse of demand at grass roots level, and it is of note that they expect significant growth in the buy-let sector to continue during 2007,” he added.

Technology is going to be a “critical factor” in the development of the mortgage broking business, according to Mr Heron.

A survey undertaken by his firm found that, for 52 per cent of investors, speed of offer was a more important factor than a competitive rate when choosing a lender.

In related news, analysts are widely predicting that there will be an increase in the base rate of interest next month, following the revelation that inflation breached three per cent in March.

© Adfero Ltd

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