Sharp increases in buy to let mortgage figures

According to recent data there has been a sharp increase in buy to let mortgage figures over the past year, with the end of 2007 showing that both the value of the buy to let market and the level of outstanding buy to let mortgages had rocketed. In fact, outstanding buy to let mortgage rates have now passed through the £1 million barrier, and at the end of 2007 stood at £1,038,000.

Compared to the figure at the end of 2006, a year earlier, this is a rise of around 23% - at the end of 2006 the level of outstanding buy to let mortgages stood at £846,900. The value of the buy to let market has also rocketed, rising from £95 billion at the end of 2006 to £122 billion at the end of 2007. Recent reports have suggested that landlords are now finding it easier to get tenants for their properties, as many consumers are unable to get onto the property ladder at present.

An official from the Council of Mortgage Lenders recently 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.’

High interest rates, higher deposit requirements, and high house prices have all hindered many non-homeowners from getting onto the property ladder, and as a result of this many have had to turn to private landlords in order to get housing.

Recent additions:

• Ongoing problems in the mortgage sector
• Many home buyers not even looking at Home Information Packs
• Number of mega-mortgages available slashed
• Not much choice for consumers looking for long term fixed rates
• Affordability falls to lowest level since 1991 for first time buyers

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