Buy to let lending predicted to reach £30 billion in 2015
Buy to let lending will break past the £30 billion mark this year as experts predict that buy to let mortgages will account for 25% of the market by 2020.
External research shows that the total value of buy to let loans reached £27.4bn last year, a big hike when compared to the £15.7bn released in 2013. The Council of Mortgage Lenders report also highlighted that the number of people taking out buy to let mortgages has increased by 18% over the past 12 months.
High demand for buy to let mortgage products is set to continue as it was announced this week that mortgage networks are showing a keen interest in signing new lenders to widen their buy to let product range. The latest new entrant to the market is one of the largest commercial banks in India who look set to offer their products to intermediaries only.
The news follows on from research conducted last month that found the number of buy to let investors in the UK increased by almost 10% in 2014.
Comments from Sequre
Graham Davidson, Managing Director of Sequre Property Investment comments on the increase in buy to let lending:
“The increase of buy to let lending comes as no great surprise given the current boom in property investment. We’ve had a number of enquiries from those who are tired of poor performing investment methods who are asking for advice on how they can make their savings work harder for them. A large proportion of people contacting us are also asking how they can make that jump onto the buy to let ladder by refinancing – all increasingly aware of how high the returns could be when compared with other traditional methods of investment.”
“Rental demand throughout the UK is on the rise so this will only attribute to the increase of buy to let landlords and investors. There has never been a better time to be investing in property and these recent reports appear to echo our predictions.”
“Some individuals may still not be aware of how advantageous it can be to use a buy to let mortgage when purchasing a property, but often it can generate even better returns than cash investments. We would strongly urge anyone considering a property purchase to speak to our advisors and see how to get the absolute most out of the cash they have available.”
For anyone considering a buy to let mortgage for their next property purchase, or if you’d like to speak to someone regarding refinancing existing properties in order to start or expand a property portfolio, speak to Sequre today. We can recommend professional mortgage advisors who are there to help source the best deals available as well as guide you through the lending process. From standard residential mortgages to large buy to let portfolios; or even to learn more about the benefits of a buy to let mortgage, speak to our team today on 0800 011 2277.