Rise in size of average BTL loan

There was a significant rise in the average buy-to-let loan size during the last quarter, according to TBMC.

The firm reported that the average loan size in the first quarter of the year was £153,443, compared to £132,705 in the final quarter of 2011.

For buy-to-let applications received by TBMC during Q1, 52% were for remortgages and 48% were for purchases.

Andy Young, chief executive of TBMC, said: “This signifies an excellent opportunity for intermediaries who could contact their existing landlord clients to see if they can arrange a better deal for them.

“There is currently a wide selection of remortgage products available to choose from and some come with incentives such as a free valuation and no legal fees.”

Young added that the pricing of buy-to-let mortgages remains stable. “Despite the enduring difficulties in the Eurozone, product pricing in the buy-to-let mortgage market has remained relatively stable during the first quarter of this year,” he said:

“At TBMC, for mortgage offers processed during Q1 2012, the average fixed rate was 4.82% compared with 4.93% in Q4 2011. For variable rates, the average was 4.07% in Q1 compared with 4.04% in the previous quarter.”