Buy-to-let boom as mortgage lending tops £5 billion in second quarter of 2013
An increase in demand from overseas buyers and property investors is boosting the buy-to-let mortgage market as competition for property intensifies.
Banks and building societies advanced 40,000 mortgages to buy-to-let investors in the second quarter of 2013 and lent approximately £5.1 billion, according to the latest figures from the Council of Mortgage Lenders.
Buy-to-let lending is continuing to recover strongly, but from a low base. The number of loans advanced in the second quarter was 19% higher by volume and 21% higher by value than in the preceding three months (when lenders advanced 33,500 mortgages, worth £4.2 billion). Year-on-year, buy-to-let lending was 19% higher by volume and 31% higher by value (33,600 loans in the second quarter of 2012, worth £3.9 billion).
Jed Newton, a director at Trinity Financial, says: "Mortgage lenders are offering some particularly low buy-to-let rates to tempt property investors. For example, The Mortgage Works has the lowest two-year fixed rate at 2.49% although you will need to put down a 40% deposit to access the rate. For those with a 25% deposit, Accord Mortgages is offering a two-year fix at 2.84%. Both of these mortgages have 2.5% arrangement fees, but there are lots of other rates with cheaper setup costs."
If you would like help to secure a buy-to-let mortgage, call us on 020 7016 0790.
August 12, 2013
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