In a move that many mortgage advisors may see as a sign that the recovery of the buy to let mortgage market is set to start in earnest, mortgage provider Paragon has said it is set to resume buy-to-let mortgages as the demand for rental is increasing.
In a Reuters report, the chief executive for Paragon, Nigel Terrington, stated:
“Demand for rental property has never been as strong.”
He added that many students and immigrants looking for work are driving the demand.
The buy to let sector was a key factor in the housing boom that tripled prices of property is just over ten years. Throughout the credit crunch, many lenders severely curbed their buy to let offering and the lending criteria was severely tightened.
Paragon used to specialise in mortgages for professional landlords but the higher cost of funding following the crisis led it to halt such lending in 2008 but has now received a secured loan facility for £2 million for the next four years.
The company believes the buy to let market is proving to be of high demand as certain markets seek to rent rather than buy, such as immigrants and students.
Those mortgage advisors offering buy to let mortgages will no doubt be pleased to see the news that Paragon is once again entering the market, and this could very well be a sign that the buy to let mortgages market could once again become competitive as other lenders follow suit or better their offerings.