Buy to Let Loans on the increase
11/11/2011 - Landlord loans account for 12% of all home loans
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It has been good news for landlords searching for Buy to Let Mortgages in recent months. The number of new loans has increased by 16% in the months from July to September and there seems to be no indication that that figure will decrease in the next few months.
Information released by the Council of Mortgage Lenders showed that in those three months more than 34,500 buy to let mortgages were agreed, this is a far cry from the previous three month period which showed a total of around29, 700 new loans granted. The sector grew from £3.2billion to £3.8billion.
The But to Let loans accounted for around 12% of all new home loans during that three month period. This is still well below the 19% for the same period during 2008.
Figures released by the CML also show that the amount of landlords in arrears by more than three months on their loans had also declined by 1.57% from 28,300 to 26,300. Unfortunately there was an increase in the amount of buy to let homes that were repossessed.
The director general of the CML, Paul Smee 'With tenant demand remaining strong in the rental sector, some existing buy-to-let landlords have been expanding their portfolios and the growth that returned to the sector in the preceding quarter has continued.
