Buy-to-let lending on the increase - Buy To Let - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Buy-to-let lending on the increase

Buy-to-let lending on the increase

Category: Buy To Let

Updated: 14/02/2013
First Published: 14/02/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

High demand for rental accommodation led to a spike in buy-to-let lending during last year, with the total value of advances rising from £13.8 billion in 2011 to £16.4 billion.

A total of 136,900 loans were advanced to landlords last year, as hoards of potential buyers continued to find themselves locked out of the mortgage market, due to strict lending criteria and difficulty in raising funds for an adequate deposit.

Total gross lending within the buy-to-let sector accounted for 11.5% of overall gross mortgage lending during 2012, as landlords sought to expand their property portfolios to cope with rising demand from tenants.

Additional data from found that the number of buy-to-let mortgages in the market has increased considerably from 250 in February 2010 to 475 today.

The Council of Mortgage Lenders, which carried out the research, said: "Landlords who can demonstrate a strong track record are in a good position to expand their portfolios.

"However, new potential landlords need to tread carefully before entering the buy-to-let market; considerations such as landlord licensing reinforce the need for potential landlords to gain a strong understanding of the legal and operating environment."

What next?

Compare BTL mortgages for new landlords
Speak to a BTL mortgage adviser

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Buy-to-let mortgage availability drops

It’s been a turbulent year for buy-to-let (BTL), with Government interventions impacting the sector and activity dampening as a result, and our latest figures reveal the largest drop in the number of available mortgage products since 2009.

Number of parent landlords on the rise

The cost of renting is on the rise, but would it cheaper if you were renting from your own parents? Many children of property moguls will hope so, and with the number of parent landlords on the rise, it’s something more and more could benefit from.

Landlords: BTL mortgage rates are still falling!

The cut to base rate has had a welcome impact on mortgage rates, and it isn’t only residential borrowers who are benefiting: buy-to-let (BTL) investors are continuing to enjoy a fall in rates, particularly those looking for a longer-term deal.