Buy To Let Updated:
The Bank of England's Trends in Lending report has found continued demand for rental accommodation helped the buy-to-let mortgage market grow even stronger during 2012 and the first three months of this year.
Gross lending of buy-to-let mortgages during 2012 increased to its highest level in four years, with many property investors taking advantage of low mortgage rates and expanding their property portfolios to meet tenant demand.
Research by Moneyfacts.co.uk found rates for buy-to-let products have steadily reduced over the past year, particularly within the fixed-rate market.
Today, the average fixed rate stands at 4.57%, compared with 5.01% in April 2012 and 5.37% the previous year.
Despite low mortgage rates and various schemes designed to boost lending, a large number of people are still unable to afford to buy a home, fuelling a surge in demand for rental accommodation.
The BoE said: "There are indications that the availability of BTL mortgages has increased over the past year.
"During the crisis, some lenders withdrew from the BTL market and lending criteria also tightened. In recent discussions, some major UK lenders reported that new entrants and returning lenders to the BTL mortgage market had increased availability."
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