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Buy-to-let deals to increase in 2012

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Brokers throughout the UK are anticipating a bump in buy-to-let business in 2012 compared with the last 12 months, research by Paragon Mortgages has confirmed.

According to a recent poll, 53% of brokers believe they will do more buy-to-let business in 2012, with just 3% expecting to do less. And of those expecting an increase, 19% are predicting a rise in business levels of a whopping 10% or more.

However, when asked about the economic factors which will impact on the mortgage market in the next 12 months, 62% said they expect unemployment to rise, while 42% think GDP growth will fall, according to reports on mortgagestrategy.co.uk.

“2012 is set to be another challenging year for the buy-to-let and general mortgage market as we continue to feel the impact of the eurozone crisis and wider economic factors,” John Heron, Managing Director of Paragon Mortgages, told the site.

“However, it’s positive to see the level of optimism among intermediaries and the fact that more than half expect to increase their level of buy-to-let business throughout the course of the year.”

Paragon’s research comes as Platform, the Co-operative Bank’s dedicated intermediary mortgage provider, revealed it is committed to significantly increase its lending in the buy-to-let market by a third in 2012, ring-fencing £600m to provide funding to the sector over the next 12 months.

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Written by Andrew Hodges

January 24, 2012 at 10:06 am

Posted in Comment, LinkedIn

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