Revival in buy-to-let lending
Permalink: Revival in buy-to-let lending
by Gill Montia
Buy-to-let lending increased by 5% in the second quarter of 2012, according to the Council of Mortgage Lenders (CML).
In the three months to June, lenders advanced 33,200 loans worth £3.9 billion (up from 32,300 mortgages, worth £3.7 billion in the first quarter).
Year-on-year, the market continued to grow with volume up 14% and the amount advanced increasing 18%.
Lending for house purchase has grown more strongly on an annual basis than remortgaging as follows: house purchase up 17% by volume and 21% by value; remortgaging up 10% by volume and 15% by value.
However, total buy-to-let lending volumes remain around one-third of their 2007 peak with the average maximum loan-to-value available standing at 75% and average minimum rental cover at 125%.
The CML’s figures also show a slight improvement in the performance of buy-to-let loans, with the proportion of borrowers more than three months in arrears declining from 1.69% at the end of the first quarter to 1.56% at the end of June.
The proportion of buy-to-let properties repossessed remained steady at 0.12%.
Commenting on the data, CML director general, Paul Smee, says: “Buy-to-let is continuing to show signs of recovery, and growing broadly in line with expectations.”
Click here to discuss this: Home Move property forums
Related stories to: Revival in buy-to-let lending
Previous: « Repossession figures drop back
Next: Rents up over 4% on the year »
Visited 2852 times, 1 so far today