Buy to let mortgages becoming more popular
The buy-to-let market has developed intensively during the past
The Council of Mortgage Lenders (CML) stated there were 938,500
of the loans, as a group worth 108 billion pounds. It is greater
than a 50-fold increase in terms of value since 1998, when there
were only 29,000 of the loans, worth 2 billion pounds.
Buy-to-let loans now account for 10% of all mortgage balances,
compared with just 3% only five years ago.
Figures have showed that buy-to-let loans now take up 10 per
cent of the property sector. Looking at these figures five years
ago it took only 3 per cent of the market.
The market was actually being fuelled by tenant demand, leaving
potential investors to invest in property more.
The CML stated: "All the signs are that the buy-to-let sector
will continue to expand. The UK has one of the lowest proportions
of housing stock in the private rented sector of any industrial
"The increasing numbers of students, the significant inflow of
migrant workers and the growing demand for flexibility of tenure
will all help the buy-to-let sector develop over the coming years."
Free Mortgage Enquiry