Buy to let mortgages up nearly 10% in a year

Buy to mortgage lending is still rising, according to the latest official figures from the Council of Mortgage Lenders (CML).

The CML ' the trade body for most banks and building societies lending to landlords ' says property investors borrowed £2.4 billion in November.

Lending was split about 50:50 between 17,700 remortgages and loans to buy new homes.

Nevertheless, lending was down 10% on the number of loans for October and around 11% on money lent.

Year-on-year the figures reversed ' the number of loans was up 9% and amount of money borrowed increased by 14%.

Property investors bought 12% fewer houses in November than October, but 6% more compared to the previous 12 months.

The buy to let market comprises around 675 mortgage deals, but many are variations on a theme.

For instance, lenders bolster their buy to let mortgage listings by offering the same mortgage at different loan-to-values. In reality this is one product split into three.

The good news for property investors is buy to let mortgage rates are falling.

Leeds Building Society is offering one of the lowest rates ' a 1.84% fix for two years.

Other lenders who have revamped their buy to let product ranges recently include Accord and The Mortgage Trust.

The Mortgage Works, the buy to let brand of Nationwide Building Society, has launched a 10 year fix for landlords at 4.99% at 75% loan-to-value with a £995 arrangement fee.

The lender also has a number of five-year fixes.

Meanwhile, for property investors confused by house price indices, the Office of |national Statistics (ONS) intends to introduce a single, official government index in March.

?The absence of a definitive government-approved index, and the proliferation of scores of other indices – often inspired for public relations purposes rather than improving the transparency of the market – has long been an irritation to many in the agency industry,' said an ONS spokesman.

House prices increased by 10.4% in England, 3.1% in Wales and 4.4% in Scotland in the year to the end of November, according to the latest figures from the ONS.

... LandlordZONE.


Article courtesy of LandlordZONE
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