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UK mortgage trend buoys buy-to-let market

Date: Thu, 23 Jun 2005

More people are choosing to invest in buy-to-let properties, according to new research.

Figures from internet broker Charcolonline shows that one in five people are taking out a mortgage to purchase a second investment home as the rental market continues to be buoyant, especially in tourist and student populated locations.

The data shows that on average, online consumers were looking to borrow £150,000 for a property worth £259,000, the equivalent of 58 per cent of a property's value.

Charcolonline also confirmed that there has been an increase in the number of homeowners looking to remortgage in order to secure a better rate.

In addition, there has been a seven per cent year-on-year rise for the number of people arranging a mortgage over the internet.

"The popularity of arranging a mortgage online continues to develop as more and more people become savvier about their finances," said Charcolonline's marketing director, Candice Hodgson.

"What is becoming clearer by the day is that online borrowers are far more likely to opt for pure product value over lender loyalty."

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