Boost in buy-to-let mortgages

20 February 2006
The second half of 2005 saw a notable increase in the number of buy-to-let mortgages taken out, according to new figures.

Between July and December, there were a record 130,400 loans taken out, research by the Council of Mortgage Lenders (CML) reveals.

A softening of the lending criteria also helped to boost the performance as many buy-to-let mortgage providers brought up the maximum percentage of the value of a property on which a loan could be taken out.

"There was a notable pick-up in the buy-to-let sector in the second half of last year, so that lending in 2005 modestly exceeded the year before," said CML director general Michael Coogan.

"The strong buy-to-let data may partly reflect increased demand for rental property. Despite slowing house prices last year, residential property remains a popular investment and this is set to continue in 2006."

However, the CML data does show that there was a fall in the number of buy-to-let mortgages in arrears.

To read more about Buy-to-let Mortgages, click here.

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