Stamp duty cut sees first-time buyers jump on buy to let bandwagon
There is growing demand among first-time buyers wanting to step into the buy-to-let market, data from Legal & General Mortgage Club revealed.
According to its SmartrCriteria tool, an 18% rise in searches for applicants who are first-time buyers, first-time landlords and non-owner occupiers pushed demand for these criteria from fourth place to first in September.
The data showed holiday lets were the second most searched term among advisers, dropping from the top spot in August, suggesting a response to the rise in staycations due to the pandemic.
SmartrCriteria figures also showed an increase in the number of advisers searching for products on behalf of expat clients who are likely making use of the stamp duty holiday,
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.
Kevin Roberts, director at Legal & General Mortgage Club, said: “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.”
He added: “Amid 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.”