More buy-to-let landlords searching for mortgages on cheaper properties
The number of buy-to-let landlords searching for mortgages on cheaper properties has risen to 70%, up 17% on the same quarter last year, according to the Mortgage Search Tracker from Mortgage Advice Bureau.
Seven in ten buy-to-let investors looking for a mortgage in Q3 2015 based their search on a property valued below £250,000. The figure is the highest seen in two years since 82% in Q3 2013.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “In recent months we have seen a surge of buy-to-let landlords looking for mortgages on lower priced properties.
As rental demand remains strong nationwide, opting for a cheaper property can result in more attractive yields. It appears many landlords are looking to invest in areas outside the South of England, where property prices won’t hold them back from making a profit.”