Mortgage products designed to offer exclusive rates for higher loan amounts are the most popular product among buy-to-let (BTL) landlords, data from Keystone Property Finance has revealed.
Keystone found that more than half (58%) of its clients have been applying for their larger loans range since December 2020. The specialist BTL lender’s larger loan range caters for loan sizes of £250,000 – £1m and offers rates from 3.09%.
The firm said that the rise in popularity for larger loans could be attributed to landlords looking to take advantage of the stamp duty holiday and being able to afford more expensive properties as a result of the tax saving.
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Indeed, data shows that landlords made up 15% of all sales agreed in November 2020, the highest level for four years, as a result of the SDTL incentive.
Elise Coole, Managing Director of Keystone Property Finance, said: “Our data shows that landlords remain confident about the BTL market, with the majority of customers looking to secure a larger loan to purchase their property.
“Undoubtedly, the stamp duty incentive has played an important part in this and has presented landlords with an excellent opportunity to bolster their portfolios and invest in higher-value properties.
“The private rental market plays a critical role for millions of people and at Keystone Property Finance, we’re committed to supporting our brokers and their landlord clients by offering a wide range of innovative solutions.
Keystone’s data also reveals differences in the types of landlords applying for the specialist lender’s larger loan products, with nearly two-thirds (62%) of applications coming from limited companies compared to 38% of applications from individual landlords.