Buy to Let Mortgage Reach Record Levels
A record number fo buy to let mortgages has been taken out by landlords, despite the slowdown in the property market, according to latest figures from the Council of Mortgage Lenders (CML).The CML said by the end of June the number of buy-to-let loans outstanding had reached an all-time high of almost 940,000. The value of the outstanding mortgages has reached £108bn - another record - and an increase of 14pc on the second half of 2006.
The news came as the CML reported that the number of loans to first-time buyers has declined to 35,600, the lowest June figure since 2004, as the five interest rate rises since last August "continue to affect the market, with affordability measures edging upwards".
Buy-to-let lending now accounts for 10pc of the mortgage market, compared to just 3pc five years ago. The average buy-to-let mortgage taken out in the first half of 2007 amounted to £123,340.
Although the rate of growth of the buy-to-let sector slowed in the first half of the year, it was stronger than in the wider mortgage market, in which the value of lending dropped by 4pc. Buy-to-let lending therefore accounted for 12pc of all mortgage advances - the highest proportion of the mortgage market seen to date.
According to the CML there are 11.7m mortgages in the UK, with loans worth more than £1.1 trillion.
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