Buy-to-let mortgage lending up in first Quarter
The amount of mortgages approved on a buy-to-let basis was up by 13.5pc in the first quarter of 2013, compared to the same period in 2012, according to the council of Mortgage Lenders (CML).
Buy-to-let mortgages now account for 13.4pc of all outstanding mortgages, a rise of 0.5pc from the same period a year ago. Landlords and investors are prospering from cheap mortgage deals brought about by Government initiatives such as Funding for Lending, which makes mortgages more readily available at a lower cost. This coupled with a trend that is seeing the price of renting a property increasing, means that there is little standing in the way of those applying for buy-to-let mortgages.
However, despite the fact that increased lending means that the housing market should continue to gain strength, many believe that an increasing share of the market for investors and landlords means that those looking to buy a first house or move home are set to lose out, in that they could be priced out of the market.
However David Whittaker, managing director of Mortgages for Business, shared an alternative view, mentioning that buy-to-let investors are simply capitalising on a market which first-time buyers are failing to take advantage of. He said:
“High yields, stagnant property prices and improved financing options are encouraging investors to add to their portfolios. Life might have become marginally easier for first-time buyers in the last 6 months, but only marginally”.
“Their life was already about as miserable as it could get. The flow of first-time buyers is still barely a trickle, which is sending the excess demand directly into the rental sector and keeping yields higher for BTL investors”, he added.
If you have any questions about your mortgage, please contact one of our advisors who will be happy to help.
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