The first six months of 2006, some 152,500
buy to let mortgages were agreed, worth £17.5 bn. This has smashed all previous records.
The first six months of 2006 saw 17% more
buy to let mortgages agreed, worth 20% more monetarily, so figures from the Council of
Mortgage Lenders (CML) highlight.
Lenders have decreased both interest rates and rental amount needed to secure a
mortgage .
Ten years ago, when we saw the first buy to let mortgages, borrowers showed rents covering 130-150% of mortgage payments to secure a
loan . This is at present at a low of 115%.
There are about 767,000 buy to let mortgages currently in the UK, with such mortgages accounting for 8% of the whole mortgage market .
The buy to let market is robust, with an undercurrent of strong rental demand. This market is highly attractive as rents are increasing at their quickest pace since July 2001.
Buyers continue facing a
property glass ceiling, with rents and
house prices rising in tandem .
