New figures from the Council of Mortgage Lenders have shown that the buy-to-let industry is still strong despite tighter credit conditions. In the last quarter of 2007, buy-to-let investors took out 84,800 new loans worth a total of £11.6 billion. Although that figure is down from by 94,300 new loans worth a total of £12.5 billion in the previous quarter, it represents a significant increase on the same quarter of 2006.
Given the difficulties faced by home owners at present, buy-to-let investors are likely to occupy a greater proportion of the market in the near future. Already, the proportion of loans granted to buy-to-let investors has increased and now accounts for 10 per cent of outstanding mortgages in terms of value.
The Council of Mortgage Lenders also revealed that the maximum loan to value ratio in the final three months of 2007 had been decreased to 85 per cent, whilst there was also a slight decrease in the average required rental income which had fallen from 125 per cent of the mortgage payment to 120 per cent.
Loan Demand from Buy to Let Investors Remains Strong
Loan Demand from Buy to Let Investors Remains Strong
Mon, 03 Mar 2008
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