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Buy-to-let mortgage lending bounces back to highest in five years

Buy-to-let mortgage lending bounces back to highest in five years

Buy-to-let lending is back to its highest for five years – when the credit crunch struck.

Lenders advanced 40,000 mortgages worth £5.1bn to buy-to-let investors in the second quarter of 2013, according to the Council of Mortgage Lenders.

Both the number of buy-to-let loans and the value of lending were the highest since the third quarter of 2008.
 
Buy-to-let lending is continuing to recover strongly, said the CML, but from a low base. The number of loans advanced in the second quarter was 19% higher by volume and 21% higher by value than in the preceding three months when lenders advanced 33,500 mortgages worth £4.2bn.

Year-on-year, buy-to-let lending was 19% higher by volume and 31% higher by value, (compared with 33,600 loans in the second quarter of 2012, worth £3.9bn). 
 
Buy-to-let lending for house purchase accounted for around half the loans advanced, and increased by 15% by volume and 19% by value over the preceding quarter.

By the end of June, buy-to-let mortgages accounted for 13.3% of outstanding lending in the UK (up from 13.1% in the preceding quarter and 12.9% a year earlier). The number of outstanding mortgages totalled 1.48 million, worth £168.5bn.
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Dave McKnight of Martin & Co Derby commented: “Strong rental demand is contributing to the continuing expansion of the buy-to-let sector, but growth is also being helped by improved conditions in funding and more widespread availability of mortgages.

The continuing recovery in the buy-to-let market is creating better opportunities for landlords and potential property investors in Derby and compared to low savings rates and stock market volatility, property in this area is still proving a solid investment”