L&G: Rise in first-time buyers searching for BTL properties
There is a growing demand among first-time buyers who want to enter the buy-to-let market, according to the latest research from Legal & General Mortgage Club.
Using data from searches through its SmartrCriteria tool it shows that the criteria search combination for first-time buyer, first-time landlord and non-owner occupier has seen a 18% increase since the beginning of September.
Searches for these applicants with these circumstances ultimately rose from fourth to first place.
The data also showed that ‘holiday lets’ was the second most searched term among advisers in September, moving from the top spot in August.
This aligns with an increase in demand for ‘staycations’ following international travel restrictions, with many choosing to holiday in the UK rather than travelling abroad.
These latest findings by Legal & General Mortgage Club suggest many first-time property investors are looking to purchase buy-to-let properties in response to the trend.
SmartrCriteria figures also revealed a jump in the numbers of advisers searching for products on behalf of expatriated clients.
Search criteria for ‘expat not in UK’ increased by 50% since the beginning of September, with the majority of searches looking for buy-to-let mortgages.
These search criteria findings reveal continued interest from foreign buyers, which has been increasing over the past several months, as overseas buyers look to benefit from the current stamp duty holiday which ends on 31 March 2021.
Kevin Roberts, director at Legal & General Mortgage Club: “Despite the impact of coronavirus, we are seeing rising demand across the housing market with buy to let in particular enjoying a mini-boom.
“Our latest findings from SmartrCriteria suggest a growing number of first-time buyers are searching for mortgages for buy-to-let ventures, including those engaging with the growing trend towards staycations this year.
“Amidst this continued high demand we are seeing in the mortgage market, thousands of borrowers are clearly turning to independent advisers to help them with their plans and these experts are playing a vital role for consumers.
“There have been thousands of criteria changes since the lockdown and mortgage advisers are supporting seasoned property investors, first-time landlords and other buyers to find lenders and products that meet their needs.”