CML data shows growth in buy to let lending

CML data shows growth in buy to let lending

Council of Mortgage Lenders (CML) data released yesterday shows gross mortgage lending is up compared to the same period last year (£3.7 million).
Over £4 billion was advanced to buy to let landlords throughout the first quarter of 2013 although almost half of this related to remortgage and not house purchase.  According to the CML “the buy to let sector continued to grow and loan performance improved”.
Buy to let mortgages currently account for around 13 per cent of the total estimated figure of 11.26 million mortgages.
Buy to let mortgages in arrears were also down at only 8.3 per cent, 9.0 per cent in the previous quarter and over 10 per cent in Q1 of 2012.
Possession rates were higher in the buy to let sector, at 0.11 per cent, compared to 0.07 per cent in the owner-occupied sector, but this is down from the 0.12 per cent for last quarter.
Commenting on the performance in the buy to let sector in Q1, CML Director General, Paul Smee, said:
"The buy-to-let mortgage market is performing well, against a backdrop of robust landlord – and tenant – demand for good quality rental property. Loan performance compares favourably with the owner-occupier sector, and buy-to-let continues to grow as a proportion of the overall mortgage market.
"As the private rented sector looks likely to be the longer-term tenure in which more households may live in the future, lenders are actively looking at how they can best evolve their future lending for those landlords who may wish to offer longer-term tenancies to their tenants – although concrete landlord demand for such borrowing is not yet clear."

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