This is according to TBMC latest Landlord Profile Tracking Index for Q4 2009. The Index tracks and monitors changes in landlord demographics and identifies trends in the buy-to-let market. The index is based on data collected by TBMC’s specialist mortgage processing unit and is compiled on a quarterly basis.
Commenting, Andy Young, chief executive officer of TBMC, said: “The results for the last quarter show that the majority of landlords are applying for buy-to-let mortgages in order to expand their portfolios with 69% of applications being for purchases, demonstrating that confidence in the market remains strong. However, we also know that with interest rates so low, many landlords are choosing to stay on their reversionary rates rather than remortgage.”
Young continued: “There has been a significant change in the type of product being chosen by landlords. In Q4 2009 70% of applications were for tracker rates compared with only 45% in the previous quarter. This indicates that in Q3 2009 there was a fairly even split in the views of landlords about what would happen to interest rates, whereas now a greater proportion believe that interest rates will stay low for some time to come.”