Buy to let mortgage figures soar
Despite the gloomy predictions relating to the housing market, and the documented reductions in house price inflation, recent figures have shown that buy to let mortgages had rocketed by the end of last year, increasing by nearly 25% compared to the end of the previous year.
Figures show that buy to let mortgages stormed through the £1 million barrier by the end of last year, with the number of outstanding buy to let mortgages standing at £1,038,000, which reflected a rise of 23%.
The figures come from the Council of Mortgage Lenders, and show that at the end of 2006, just one year earlier, outstanding buy to let mortgages stood at £846,900. It seems that the housing market slowdown has had no impact on the buy to let market, with figures showing that the buy to let market is now worth £122 billion, which is a rise from £95 billion at the end of 2006.
Michael Coogan 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.’
With many non-homeowners unable to get onto the property ladder due to high interest rates and high property prices, many have opted to rent, and in many cases, with social housing lists so over-subscribed, consumers are turning to private landlords in order to put a roof over their heads.
Recent additions:
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- End Of The Road For 125% Mortgages
- Repayment and Interest Only Mortgages
- Using a UK Loan Broker To Get Finance
- Home sellers struggling to sell their properties
- Lenders announce withdrawal of 125% mortgages
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