Bright future for buy-to-let mortgage market

by Christopher Evans

The future for the buy-to-let mortgage market is looking up, according to the editor of Property Hawk.

Chris Horne was commenting on the return of buy-to-let lender Paragon, insisting it is a "welcome" move.

He said that a lot of lenders have stopped offering mortgages in the sector, but pointed out that those still in the market are making very high margins.

"Inevitably those will ultimately attract more lenders into this niche lending area because of the resulting profits from it," he remarked.

Mr Horne added that increased competition among buy-to-let mortgage providers could prompt a reduction in fees to attract business.

Paragon announced this week that it aimed to return to its position as the market leader in buy-to-let, targeting professional landlords with its finance offers.

Its product range includes fixed-rate deals starting from 5.3 per cent, as well as tracker rates from 4.3 per cent.

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Published on: September 29, 2010

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