In its latest landlord profile tracking index, the buy-to-let specialist TBMC, also revealed a narrowing price gap between fixed rates and trackers and an increased demand in remortgages.

Andy Young, chief executive at TBMC, said:

“It is encouraging to have seen the steady increase in loan size over the last three quarters with the average buy-to-let mortgage now over 30% higher than it was during the final two quarters of 2009.

“This reflects the gradual recovery of property prices and availability of some higher loan-to-value buy-to-let products in the mortgage market,” he added.

TBMC revealed in its index that the average loan-to-value saw a small increase and was 66% in the third quarter compared with 62% in the first quarter.

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On fixed rates, he said:

“The past year has seen a lowering in the price of the average fixed rate buy-to-let mortgage being offered.

“As pricing of trackers and fixed rates have converged we have seen a rise in popularity of fixed rates and in the third quarter there were more fixed rate mortgages offered (55%) via TBMC than there were trackers (45%).”

The index also revealed an increase in the percentage of applications received for remortgaging to 48%, compared to purchases – 52% – in the third quarter.

Young added: “The rise may reflect increasing competition in the market as new lenders have entered the market and established lenders like Paragon have re-emerged, resulting in more attractive buy-to-let products for existing landlords.”