Mortgage lending to buy-to-let landlords has again increased by volume and by value, The Buy2Let Shop has found.
Rise in the third quarter
Buy-to-let landlords have seen investment returns of almost 1,400% since 1996 – the year buy-to-let mortgages were introduced. The mortgages allow an investor to borrow money to purchase a property in the private rented sector, in order to let it out to tenants.
According to the Council of Mortgage Lenders (CML), buy-to-let property purchase has risen by 36% since the start of this year, while remortgaging for buy-to-let purposes has also seen an increase of 62%. Buy-to-let represents 18% of gross lending to September 2015 something which has been the theme for this year.
Paul Smee, director general of the CML, said: “The market was a slow starter this year, but this quarter shows it is now firmly on an upward trajectory. With competitive rates and high levels of product choice currently available, alongside generally improving economic conditions, we expect this to continue as we head into the New Year.
“Buy-to-let continues its growth this period, but at 18% of new lending in September remains the fourth largest lending type behind first-time buyers, home movers and remortgage. There were five times as many house purchase loans to homeowners as to buy to let landlords in September, and the growth in buy to let lending largely continues to reflect its more belated recovery from recession.”
The Buy2Let Shop
The Buy2Let Shop are the UKs leading estate agent for investment grade property and along with our sister company “The Buy2Live Shop” we offer professional and friendly services to vendors looking to sell their home to investors looking to build their portfolio.
Through our national advertising campaigns and huge network of contacts, we connect buyers with sellers and unlike most high street estate agents, we not only have a large number of listed buyers looking for find their dream home, we also have a database of retained investors, with proof of funds and finance in place.