Platform commits to 33% increase in buy-to-let mortgage lending
Posted by Gary Winters
Opportunities for UK property investment could be boosted by the news that one buy-to-let mortgage provider is planning to significantly increase lending this year.
Platform, the Co-operative Bank's intermediary mortgage provider, has promised to increase its buy-to-let lending by a third in 2012, ring-fencing £600 million to be lent to landlords investing in new list property.
The intermediary said that it saw sustained growth in demand for buy-to-let mortgages throughout 2011 - a year in which it leant £450 million for rental property investments.
"Our commitment to lend a minimum of £600 million in buy-to-let loans in 2012 reaffirms our commitment to the sector," said Lee Gladwell, business development director at Platform.
"Platform has many years' experience in buy-to-let and we aim to be a preferred lender for this sector in future by continuing to provide a wide and innovative product range and great service support."
He added that factors such as uncertainty in the economy, employment and falling house prices are likely to increase demand for rental property and create investment opportunities for landlords.
Platform also recently introduced a number of new buy-to-let products, including the Options range - which comes with no early redemption fees - and the Cashback range, designed specifically for new landlords.
The intermediary said it has plans to launch further new mortgage products for those buying buy-to-let properties this year.
"We recognised the growing demand for buy to let during 2010 and we have supported intermediaries with a growing suite of products over the past year," added Mr Gladwell.
It follows a recent survey by fellow buy-to-let lender Paragon, which revealed that most landlords predict demand for rented accommodation will continue to rise in 2012.
Over half (56 per cent) of landlords expect tenant demand to grow this year, compared to 45 per cent who felt likewise at the beginning of 2011.
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