Paragon Expects UK Buy to Let Mortgage Market to Improve

In the opinion of Mr. Terrington, chief executive of Paragon, access to buy to let financing will improve in 2011. According to estimates of Paragon, the overall number of buy to let mortgage deals and lenders increased in 2010 and will further rise by 10% this year.

Since he expects this issue to be the most important for UK landlords, he said that a number of new lenders might enter the British buy to let market.

He, however, is concerned that too many small lenders might make the market overcrowded and, thus, distort the healthy competitive environment.

To avoid such problems, Mr. Terrington, urges UK lenders to come up with innovative buy to let products.

It is important to note that Paragon is not the only organisation forecasting growth of UK lettings market. Similar figures were published by the Council of Mortgage Lenders in late December 2010.

Other sources, however, claim that 2011 is going to be another uncertain year for the buy to let market as mortgage lending will hit 30-year low.