Buy to let mortgage numbers appear to be increasing.
Recently published Council of Mortgage Lenders buy to let mortgage figures, suggest lending is increasing in this sector.
With increasing rents in many areas of the UK, data suggests this area of the market is seeing healthy growth. Call Deal Direct for the latest offers and buy to let deals from lenders throughout the market.
Up to September this year, nearly £12billion of buy to let mortgages have been funded. Figures have been reported as 19% higher than in 2011. However, this is still only around a third of peak figures that were recorded in 2007.
Figures also suggest that over 8,000 properties had been repossessed in the three months between July and September. This figure has fallen compared to over 9,500 for the same period last year and is the lowest number since 2007.
In the last quarter funding had been fairly evenly divided between new mortgages and remortgaging. The average loan to value on offer for a buy to let mortgage is up to 75% with lenders requiring 25% deposit. Many lenders also require the rental income to cover 125% of the mortgage value.
New FSA rules, which are due to come into effect in 2014, are less likely to affect buy to let mortgages. The cheaper mortgages, on an interest only basis, may still be available, unlike restrictions in the residential sector.
For impartial advice and the best buy to let mortgage deals on offer contact Deal Direct.
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