Buy to let Mortgage Market Report Published

20 Jun 2018

Buy to let mortgage market hit by legislative changes

IRN Research publish a new report on the Buy to let (BTL) mortgage market.

The recent legislative changes aimed at restricting the activities of BTL Landlords are now having a negative impact on the BTL mortgage market, with new home purchases by BTL landlords having slowed significantly. In 2017, the value of new BTL advances fell by 12.3% and the market is expected to stagnate with little real growth in 2018. Also, in 2017, the number of BTL mortgages taken out fell by 10.4%.

New Purchases Down as landlords switch to remortgaging

The recent tax changes and the threat of rising interest rates in the future have resulted in a growing tendency for BTL landlords to remortgage rather than take out loans for new property purchases. In 2018, almost three-quarters of the value of BTL mortgages will represent remortgaging and around seven-in-ten BTL mortgages that will be taken out will be for remortgaging purposes. At the end of 2017, BTL mortgage holders owed a combined amount of £202.4 billion, compared with £196.2 billion at the end of 2016. This is one of the slowest rises in amounts owed seen over 2007-2017, indicating high levels of loan repayment activity.

IRN’s Buy to Let Mortgage Market Trends report  report outlines the trends in the BTL mortgage market and discusses the market’s structure, market developments and drivers, the key mortgage providers, market size and trends and forecasts to 2020.

Download a a full report description

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Related IRN Reports

First Time Buyers Market Report 2018

Home Owner Mortgages 2018


IRN Team

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