One of Britain’s best known and highest profile buy to let specialist lenders says the number of new BTL mortgages being taken out has dropped since a raft of new restrictions and regulations were introduced by the government.
Paragon Banking says that although its own business has grown in the past year, the issue of mortgage interest tax relief reductions introduced by the government for landlords has had a particularly damaging effect on the wider BTL mortgage market.
“It is the amateur landlords – those with fewer than four properties – who have been moving away from the market, leading to a fall in the volume of buy to let transactions which seems to be establishing a new ‘normal’ level” says the group’s annual report, presented to shareholders this week.
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