The typical deposit put down on an investment property by a landlord has now hit the jaw-dropping figure of £100,000.
Mortgage Advice Bureau claims landlords applying for a buy-to-let mortgage now put down a six figure sum, up around 15% or £13,000 from last year.
The firm claims that rising house prices means existing landlords are putting down higher deposits in a bid to secure lower interest rate products when they borrow.
The typical property purchased by a buy-to-let landlord in the last three months of 2014 was worth £230,000. Landlords are seeking shorter mortgage terms so in the last quarter of last year 41% took out mortgages with terms between 15 and 24 years.
“House prices have settled into a steadier pattern in recent months but the current low rate environment offers many BTL borrowers the chance to reassess their finances. This part of the market is likely to see strong activity this year, both from people who are already involved with buy-to-let and others who are learning the ropes. A number of mainstream lenders have increased their buy-to-let offer already and new entrants have also arrived to boost competition” says Brian Murphy, head of lending at Mortgage Advice Bureau.