Approvals of buy to let mortgage deals are up by over 30%.
Figures released by the CML reveal buy to let mortgage approvals for the first quarter of 2012 increased by 32% on an annual basis.
The value of buy to let mortgage deals approved to fund property investment rose year on year for a third time in the first quarter of this year. This was in response to falling property prices and increasing rental yields which have made property investment for rental purposes highly appealing.
Around 32,300 mortgages for a combined value of £3.7 billion were advanced for the purpose of buy to let. While this sector of the property market is experiencing a resurgence, figures are still significantly down on pre-credit crisis levels.
The CML have advised that the buy to let sector is increasing its mortgage market share, however investment landlords are now required to put down a larger deposit than before 2007.
Lenders average loan to value levels for a buy to let are 10% up on pre-credit crisis levels of 85%, property investors are now required to have a minimum 25% deposit to access the best deals.
Demand for rental property remains high with many families forced to rent due to access to UK residential mortgages being further restricted by rising rates, high deposit levels and tightened lending criteria.
If you are considering property investment and are looking for a competitive buy to let mortgage contact Deal Direct.
