The Property Ombudsman

Lending to landlords is booming

Recent figures have shown high amounts of new lending and remortgaging activity from landlords and property investors in the UK.

A report from the Council of Mortgage Lenders (CML) noted a 12% monthly increase in lending with a total of 18,200 buy to let loans approved in March 2015 alone. When compared to figures from March 2014, lending for buy to let purposes have increased by 21%.

The total value of March loans comes to £2.7 billion, an annual increase of 35%. Earlier in the year, it was reported that the total value of buy to let lending could reach up to £30 billion in 2015. So far in the first three months of the year, the total value of buy to let lending reached £7.8 billion.

Remortgaging has continued to account for over half of all buy to let lending with a total of 9,400 loans given specifically for the purpose of refinancing – an increase of 14.6% in the last month and a 29% increase year on year. The total value of these remortgage loans equated to £1.4 billion, which is an increase of 27.3% from the previous year.

Recent pension changes and falling mortgage rates are believed to have fuelled such a significant increase in buy to let lending overall.

Graham Davidson, Managing Director of Sequre Property Investment, comments on the increase in buy to let mortgage activity:

“What we’re seeing from the report is that all the numbers are increasing at quite a rapid rate. The percentages aren’t rising in nominal amounts, we’re seeing jumps of up to 35% year on year in some cases. This increase is very promising as it indicates that confidence is once again back in the property market, both from the banks who are continuing to approve more loans, and landlords who are investing in the properties because they know the returns are there.”

“Mortgage rates have been hitting record lows so the figures do reflect the current market quite well. The changes to pension rules will also have a part to play so we may see this increased activity continue as more people take advantage of the freedoms. Anyone who is looking to invest in buy to let property now would no doubt be getting a great deal and a healthy return on their investment.”

Landlord lending has never been more popular. If you’re interesting in seeking financial advice in order to fund a buy to let investment, speak to one of our team today. Sequre can recommend mortgage advisors to help you to find the best deal for you and your personal circumstances. Whether it be through a mortgage or a remortgage, call us on 0800 011 2277 to find out more. 

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