Increase in buy to let mortgage lending

 

March 20, 2008

According to a recent report the end of last year saw a rise in the level of buy to let mortgage lending, with an increase of around 25% compared to the end of the previous year. By the end of last year buy to let mortgage figures had broken through the £1 million barrier, with outstanding buy to let mortgage figures now at £1,038,000. Buy to let mortgages are continuing to thrive despite reductions in house price inflation and a bleak outlook for the housing market.

An official from the Council of Mortgage Lenders stated: : ‘Tenant demand for private rented property remains strong, and buy-to-let is fulfilling an important role in helping to deliver an increased flow of high quality homes to rent. Buy-to-let has remained resilient in the face of the funding constraints that have affected the sector and the wider mortgage market. We expect to see a continuing healthy appetite for buy-to-let finance this year, in line with continuing expected consumer demand for private rental property.’

Outstanding buy to let mortgage figures stood at £846,900 by the end of 2006 according to CML figures, so the rise in buy to let mortgage figures is a significant one that has taken it through the £1 million barrier. The buy to let market is now worth £122 billion, a massive rise from its value of £95 billion at the end of 2006.

With many non-homeowners unable to afford to get onto the property ladder, and many others deciding to wait until interest rates and house prices fall further, demand for rented properties is healthy so private landlords are able to find tenants for their homes more quickly.

Recent additions:

Written by admin · Filed Under Buy to Let Mortgages, Mortgages 

Comments

Got something to say?