Buy-to-let mortgage market returns to growth

Landlords are returning to the buy-to-let mortgage market in significant numbers, with many looking for cheap mortgages.

The value of buy-to-let loans increased by 21 per cent in the second quarter of 2011, mainly driven by remortgaging, according to the Council of Mortgage Lenders CML.

Figures from the organisation showed that remortgaging accounted for 65 per cent of the overall increase in buy-to-let lending in the quarter.

There were 32,000 buy-to-let loans, worth £3.5 billion, taken out from April to June, the highest number and value since the last quarter of 2008.

Although the data for the second quarter of 2011 is significant and highlights increased confidence, the market is currently running at around one third of the levels seen at the peak of lending in 2007.

CML director general Paul Smee said: "If you consider the buy-to-let recovery alongside the increase in first-time buyer numbers we published yesterday, it appears that first-time buyers are not being displaced by buy-to-let landlords but are holding their own in a restricted market.
 

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2011-08-11 12:48:28 © Moneyextra.com