An increasing amount of buy-to-let business is being attributed to current investors wishing to expand their property portfolios, according to research from Mortgage Express.
The lender found that 44% of applications for drawdowns on buy-to-let mortgages were for further property purchase. This figure exceeds the traditional drawdown favourite of funding refurbishment and improvements ‘ with just 34% of applicants listing it as the reason for the loan.
Other reasons for drawdown listed by applicants included business investment, acquisition and funding a new car.
According to Roger Hillier, product development manager at Mortgage Express, the trend towards further property investment is an indicator of the current success being enjoyed by investors in the buy-to-let market.
‘These figures show that for investors building up a portfolio, drawdowns are proving to be a key source for raising further deposits. Advisers should be aware that a lot of buy-to-let business today will be repeat business. It is a positive indicator that some people are doing very well with their current investments and are being encouraged to expand their portfolios further,’ he said.