Wednesday, 18 August 2010

The latest Council of Mortgage Lenders (CML) buy-to-let figures

Andy Young, chief executive of Landlord Centre, our mortgage partners says, ‘It is encouraging to see a continuing trend of growth in the buy-to-let mortgage market and there have been some positive developments that have supported this, including the availability of products up to 80% loan to value, HMOs and limited companies. However we are clearly a long way from the levels of lending required to satisfy demand and the choice of products for landlords is still limited. Criteria remain tight and despite some new lenders entering the market, it will take the return of specialist lenders with wholesale funds to really inject some much-needed growth and competition into the market.’

‘It is a positive sign that remortgages accounted for over 40% of all buy-to-let mortgages in the first quarter of 2010 and reflects the availability of some competitively priced products in the market place, including specific remortgaging products offering free valuation and free legal fees which has enabled landlords to remortgage more readily. Landlord Centre has seen a steady growth in the remortgage market over the last three quarters, with 45% of apps received in the second quarter of 2010 for remortgages up from 41% in the first quarter and just 31% in the last quarter of 2009.’

‘As first-time buyers continue to struggle and more people are turning to the private rental sector, it is crucial that buy-to-let property investors have easier access to funding to satisfy the demand for quality rental accommodation. I am confident that the buy-to-let sector will continue to play a vital role in the provision of housing in the UK, but this must be supported by the availability of finance.’

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