Landlords remain busy on the property markets with December applications for buy-to-let mortgages 25 per cent higher than in November, new figures from Alliance & Leicester show.
The growth at year's end consolidated an upward trend in applications over the year which the bank believes bodes well for demand in 2007.
As many as 70 per cent of buy-to-let applications in December sought mortgage products with a loan-to-value ratio (LTV) of under 75 per cent – 23 per cent more than in November – in the expectation that they would quickly recoup the capital spent on buying the home in rental income.
The figures indicate a "very buoyant buy-to-let market" for investor landlords, commented the bank's head of intermediary mortgages, Mehrdad Yousefi.
The 2006 figures seem "likely to pave the way for solid growth into 2007", he added, confirming market analysts' predictions that rental properties will be in demand as long as house purchase prices remain out of reach for many aspirant first-time buyers.
This week, Alliance & Leicester launched a range of specialist mortgages targeted at the buy-to-let market.For more information about buy-to-let mortgages, click here.
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