The number of mortgages being taken out by landlords increased by almost 50% last year, figures showed today.<\/p>\n
During 2006, 330,000 buy to let loans worth a total of \u00c2\u00a338.4bn were loaned out by banks, building societies and specialist lenders.<\/p>\n
The Council of Mortgage Lenders (CML) said the total represented a 48% increase in volume and 57% increase in value over 2005.<\/p>\n
In total, the number of buy to let mortgages outstanding now stands at around 850,000, worth a total \u00c2\u00a394.8bn.<\/p>\n
Since the end of 2005 – when the corresponding figures stood at 702,000 and \u00c2\u00a373.4bn – the number of buy to let mortgages has risen by 21% and their value by 29%.<\/p>\n
By value, buy to let lending now represents 9% of all mortgage balances, up from 8% in 2005.<\/p>\n
Arrears continued to fall during 2006, according to the CML. The proportion of buy to let mortgages three months or more in arrears dropped.<\/p>\n
The figure is lower than the 0.89% of loans in arrears in the wider mortgage market.<\/p>\n
The number of buy to let properties taken into possession during 2006 was 1,142 – representing 0.14% of all landlord mortgages. This compares to a 0.15% repossession rate in the market as a whole.<\/p>\n
The number of cases where a beneficiary of rent was appointed – someone who collects rent on behalf of a lender in the case of mortgage default – was recorded at 0.06% of buy to let properties.<\/p>\n
Michael Coogan, director general of the Council of Mortgage Lenders, said: ‘The buy to let market has performed even more strongly than the wider market over the course of 2006.<\/p>\n
‘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.’<\/p>\n","protected":false},"excerpt":{"rendered":"
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