Its quarterly landlord profile tracking index revealed that average loan values rose 1.59% in Q2 compared to the previous quarter to £138, 526 and are up 6.4% since the beginning of 2011.
TBMC highlighted that this will help push up brokers’ commission. It said that the increase was mainly due to more lenders offering higher LTV deals and the availability of finance for Houses in Multiple Occupation (HMOs), which tend to be higher value properties.
It found that more than 50% of buy-to-let offers it processed in Q2 were for buy-to-let loans over 70% LTV, with an average LTV of 67% for the quarter.
In addition, average interest rates fell in Q2 after recording an increase the previous quarter. Average fixed and tracker rates dropped 0.18% to 4.82% and 4.02% respectively, reflecting City sentiment that base rate is unlikely to move until the end of the year, if not 2012.
Meanwhile, rental yields remain healthy, TBMC said, at an average 6.25%, with Cardiff coming out top with an average yield of 7.11%.
Student tenants and terraced houses offered the highest yields for landlords at 7.52% and 6.65%, with the combination of the two generating the highest average rental yield of all at 7.77%.
Families in terraced houses were next at 6.72% followed by professional tenants in flats at 6.14%.
Andy Young, chief executive of TBMC, said: “As UK plc remains fragile, the buy-to-let market has stabilised and there are come great deals currently available to residential property investors. With high tenant demand and good rental yields, there are plenty of opportunities in the buy-to-let sector.”
