According to data from Keystone Property Finance, mortgage products designed to offer exclusive rates for larger loan amounts are the most popular product among Rental Home Owners (BTLs).
Keystone found that more than half (58%) of its customers have applied for their widest range of loans since December 2020. Specialist lender BTL’s wider loan range covers loans from £ 250,000 to £ 1 million and offers rate of 3.09%.
The firm said the growing popularity of larger loans could be attributed to homeowners looking to take advantage of the stamp duty holiday and who can afford more expensive properties through the tax savings.
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Indeed, data shows that homeowners accounted for 15% of all sales made in November 2020, the highest level in four years, thanks to the SDTL incentive.
Elise Coole, Managing Director of Keystone Property Finance, said: “Our data shows that homeowners remain confident in the BTL market, with the majority of clients looking for a larger loan to purchase their property.
“There is no doubt that the stamp duty incentive played an important role in this regard and provided a great opportunity for homeowners to strengthen their portfolios and invest in higher value properties.
“The private rental market plays a vital role for millions of people and at Keystone Property Finance we are committed to supporting our brokers and their owner clients by offering a wide range of innovative solutions.
Keystone data also reveals differences in the types of homeowners requesting the larger loan products from the niche lender, with almost two-thirds (62%) of applications from limited companies, compared to 38% of applications from individual owners.