Terrible time with council tenant and shock at how law treats landlords15:32 PM, 9th January 2019
About 2 weeks ago 40
Buy to Let (BTL) mortgages represented 15% of the total outstanding residential mortgage loans at the end of 2014 with gross advances of new loans recovering back to 2005 levels (see chart A).
Total annual gross lending has grown since 2010 to £27.4 billion reflecting increased supply and demand factors with BTL now standing at 45% of all residential house purchases.
BTL remortgages have also grown substantially to 52% of transactions with improvements in the availability of products and loosening of criteria.
The number of BTL products advertised has doubled since the financial crisis and while most loans are still at or below 75% Loan to Value (LTV) there has been a steady increase since mid 2013 in loans between 80 – 85% LTV (see Chart C).
Pricing of BTL over the last 12 months has fallen sharpest for loans at or below 75% LTV (see Chart E). Although Fixed rates have fallen, it has not been by as much as the reduction in reference swap rates, with the spread on rates rising. This spread is expected to narrow during 2015 with further reductions in BTL fixed rates.
The rate of possession of BTL properties was almost twice as high as owner-occupier ones, even though the rate of underlying arrears on BTL lending remained lower in 2014 according to data from the CML. The CML commented that this was because lenders offer extended forbearance to owner occupiers to help them get through periods of financial difficulty without losing their home.
If you wish to research current Buy to Let mortgages available please feel free to use our mortgage calculator and quote engine CLICK HERE
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