The popularity of buy to let mortgage products offering exclusive rates for higher value loans is a sign of optimism in the market, claims Keystone Property Finance.
Some 58 per cent of Keystone clients applied for its larger loans range since December - loans from £250,000 to £1m.
Keystone says the rise in popularity for larger loans could be attributed to landlords taking advantage of the stamp duty holiday and trying for more expensive properties.
Data shows that landlords made up 15 per cent of all sales in November, the highest level for four years, as a result of the SDLT incentive.
The lender says investors continue to take out larger mortgages in expectation of a continued increase in capital appreciation and positive rental yields.
Nearly two thirds of applications are now coming from limited companies compared to 38 per cent of applications from individual landlords.
Elise Coole, managing director of Keystone Property Finance, says: “Undoubtedly, the SDLT incentive has played an important part in this and has presented landlords with an excellent opportunity to bolster their portfolios and invest in higher value properties.”