With 58% of buy-to-let intermediaries expecting rental incomes to increase, and 70% expecting property values to rise over the next 3 months, Mortgage Trust’s latest intermediary forecast reveals strong confidence among intermediaries operating in the buy-to-let sector.

Recent data from the Council of Mortgage Lenders revealed that buy-to-let lending increased by 40% in the second half of 2005, and with Mortgage Trust’s latest research showing that 52% of intermediaries expect to write more buy-to-let business over the next three months, the buoyancy of the sector looks set to continue.

Intermediaries continue to expect the majority of their business to be generated by existing landlords, whilst loans to first-time landlords remain in the minority.

Re-mortgaging is now expected to account for 45% of intermediary business volumes, a significant increase from one year ago when the figure was 37.5%. Increasing re-mortgage activity goes hand in hand with further investment, and indicates a renewed appetite for buy-to-let investment, a likely result of recovering house prices, competitive mortgage deals and strong rental demand.

Over the next three months, what proportion of your business do you expect to constitute of each of the following?

Nicola Severn, Marketing Manager at Mortgage Trust commented: "Both our findings, and the figures released recently by the CML, indicate that there has been a definite upswing for the buy-to-let sector."

"The trend for remortgaging indicates that investors are releasing equity for further investment, however whilst landlords are actively managing their portfolios to ensure maximum return on investment, the majority are cautious investors who believe in responsible borrowing and have little desire to mortgage themselves beyond levels they feel comfortable with."