Nine per cent of mortgages now buy-to-let

Posted: 15 Feb 2007 09:45:24 GMT

Nine per cent of all mortgages outstanding in the UK are buy-to-let products, a report from the Council of Mortgage Lenders (CML) has revealed

Nine per cent of all mortgages outstanding in the UK are buy-to-let products, a report from the Council of Mortgage Lenders (CML) has revealed.

The number is up from eight per cent in 2005 as the market continues to expand. Around 330,000 buy-to-let deals were taking out in 2006, worth £38.4 billion overall.

"The buy-to-let market has performed even more strongly than the wider market over the course of 2006," said Michael Coogan of the CML.

"With evidence from other sources of strong tenant demand, rising rents and falling void periods, buy-to-let looks set to continue to remain popular and successful."

Around 850,000 buy-to-let mortgages are outstanding in the UK. The number of loans in arrears fell to 0.59 per cent in December, well below the 0.89 per cent of all mortgages.

More than half of all buy-to-let lending throughout 2006 was secured on new rental property rather than remortgaged property, said Alliance & Leicester.

© Houseladder Ltd