Buy to let mortgage lending has hit a new record share of total mortgage loans in the UK, according to lenders’ data. Lending for buy to let mortgages stood at 13.4% of all outstanding mortgages at the end of March, which was up from 12.9% a year earlier. £4.2bn of buy to let mortgage lending occurred during the first three months of this year, according to figures from the Council of Mortgage Lenders (CML). This is the highest level since the credit crunch in 2008 and made up 12.4% of the total – up from 11% a year ago. Ben Madden, managing director of letting agents Thorgills said that “Low interest rates have scored a double whammy – both making mortgages cheaper and making buy to let a substantially more attractive investment than low-paying savings account,”
and is why buy to let has become the ‘engine room’
of the property market as a whole.However, despite current figures, total lending to buy to let investors still remains well below its peak. £12.7bn was borrowed by investors in both the third quarter of 2006 and the same quarter a year later. Giles Hannah, managing director of agency VanHan, said demand from tenants continued to fuel growth in the sector. However, he warned that extra costs could become a factor if the government continued with plans to ensure landlords check the immigration status of tenants.The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.Setfords Solicitors are a national full service law firm, with property solicitors in Nottingham and across the country.