New figures have shown The Buy2Let Shop that the number of buy-to-let mortgages granted to investors increased almost 40% in the year to June 2015.
A specialist buy-to-let mortgage allows investors to buy residential properties, which they can then use to generate income by renting rooms out to tenants. Analysis conducted by Wriglesworth for lender Landbay, suggests that since the introduction of this specialist financial product, buy-to-let landlords have earned average returns of 1,400% on their investments.
CML monthly lending trends report
The Council of Mortgage Lenders (CML) recently released their monthly lending trends report for June 2015. Introducer Today reported that these statistics indicate that the number of buy-to-let loans provided to UK investors rose 38% in the year to June 2015, to 22,100.
Furthermore, CML data proves that the value of buy-to-let mortgages increased year-on-year by 55%, to £3.4 billion. Meanwhile according to Letting Agent Today, buy-to-let re-mortgaging activity vaulted 29% from May 2015 – June 2015. This means that buy-to-let mortgages now account for 17% of gross lending.
Future of buy-to-let lending
Mark Harris, the chief executive of mortgage broker SPF Private Clients, recently commented on the future of buy-to-let lending. He said that “we expect the majority of investors will still consider buy-to-let to be a good investment and carry on regardless.”
This is partially because it looks as though investors will continue to benefit from record low rates on buy-to-let mortgages. It was thought that lenders would start hiking their rates, due to the expectation that the Bank of England will increase its base interest rate in the latter half of 2015, yet CML data seems to suggest otherwise.
Brian Murphy, the head of lending at Mortgage Advice Bureau, commented: “While a couple of high street lenders have recently increased their rates, the vast majority are offering record-low deals and there are still plenty of competitive products for borrowers to snap up.”
The Buy2Let Shop
Buy2Let Shop are the UKs leading estate agent for investment grade property and along with our sister company “The Buy2Live Shop” we offer professional and friendly services to vendors looking to sell their home to investors looking to build their portfolio.
Through our national advertising campaigns and huge network of contacts, we connect buyers with sellers and unlike most high street estate agents, we not only have a large number of listed buyers looking for find their dream home, we also have a database of retained investors, with proof of funds and finance in place.