Buy to lets rise

Grovelawn Financial News 27/02/2008

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Lending increases for landlord mortgages

The rising cost of first time buyer properties and a growing immigrant population has fueled the demand for rental properties. Buy to let mortgages increased during the latter part of 2007 and according to the Council of Mortgage Lenders, accounts for 12 per cent of gross mortgage lending. Figures showed a decrease in the number of owner occupiers in England by 83,000 during 2007 and the CML director general said he thought that buy to let properties where "fulfilling an important role".

Buy to let lending increased to £24.1 billion across a million mortgages. The largest provider of buy to let mortgages Bradford and Bingley has 20 per cent of the btl market. The chief executive of B&B has voiced an opinion that the rising costs of taking out a btl mortgage will deter new investors unless they have a much higher level of positive cash flow and are able to fulfill lenders' strict criteria. Only one lender currently offers a 90 per cent loan to value btl product.

← NR shareholders told to "prepare for worst" | News For February 2008 | Cheltenham & Gloucester's cuts high loan to value range →

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