Mortgage lender Paragon have published data showing a 4% decline in the number of remortgage applications processed in quarter 2 of this year. This decline matches that seen in Q2 for 2013, where the number of remortgage applications reduced by 36%. Interestingly, Paragon reported a 2% increase in the number of buy to let mortgages since Q1, and an increase in the number of First time buyers, which have increased over the past year up to 19% of their total mortgage business.
Paragon’s intermediary panel also suggest that buy-to-let remortgaging also reduced by 4%. Conversely, the proportion of buy-to-lets for first time landlords increased in the last quarter from 20 to 22%. The MD of Paragon said:
The declining proportion of remortgages against the increased proportion of first time buyer mortgages represents a continuation of a trend that has been apparent over the past couple of years as the market has gathered momentum.
It is promising to see an overall increase in the proportion of buy-to-let mortgages being processed, which again highlights the steady growth we are experiencing in the market.
There is a clear declining trend in buy-to-let remortgages, with the proportion having dropped significantly since a pre-crisis peak in 2007/08 followed by a steady and continuing decline.
It is also a positive step to see some growth in the number of first time landlords seeking buy-to-let as new blood in this market is important to a strong sustainable future for the private rented sector.