Buy to let accounts for 13% of total number of mortgages

Published on

Council of Mortgage Lenders

Gross mortgage lending of £4.2 billion across 33,500 mortgages was advanced to buy-to-let landlords in the first quarter of 2013, according to latest survey data from the Council of Mortgage Lenders (CML).

This compares with £4.6 billion the previous quarter, and £3.7 billion in the first quarter of last year.

Nearly half of this lending was for remortgage, rather than house purchase.

By the end of March buy-to-let lending accounted for 13.4% of total outstanding mortgage lending in the UK – up from 13% the previous quarter and 12.9% at the end of the first quarter of 2012.

There are now around 1.46 million buy-to-let mortgages in the UK, accounting for around 13% of the total estimated stock of 11.26 million mortgages.

Of all mortgages in arrears of over three months, only 8.3% were buy-to-let (down from 9.0% the previous quarter and 10.5% in the first quarter of last year). The possession rate, at 0.11%, was higher in the buy-to-let sector than the 0.07% in the owner-occupied sector, but fell from its previous quarterly rate of 0.12%.

CML director general Paul Smee said: “The buy-to-let mortgage market is performing well, against a backdrop of robust landlord – and tenant – demand for good quality rental property. Loan performance compares favourably with the owner-occupier sector, and buy-to-let continues to grow as a proportion of the overall mortgage market.

“As the private rented sector looks likely to be the longer-term tenure in which more households may live in the future, lenders are actively looking at how they can best evolve their future lending for those landlords who may wish to offer longer-term tenancies to their tenants – although concrete landlord demand for such borrowing is not yet clear.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Advice firms step up technology use as integration remains key obstacle

Financial advice firms are taking a more proactive approach to technology, but integrating new...

Check launches mortgage readiness tool for prospective borrowers

Check.co.uk has added a mortgage readiness feature to its app, bringing together credit, affordability,...

Yorkshire BS team raises £1,000 with 198km treadmill challenge

Seven Yorkshire Building Society colleagues have completed a 198km treadmill ultramarathon to raise money...

Square 1 Media joins Momenti Group’s Observatory as corporate partner

Square 1 Media has become a corporate partner of The Observatory, the mortgage market...

The Monmouthshire expands mortgage platform pilot to more intermediaries

Monmouthshire Building Society has widened the intermediary pilot of its new mortgage origination platform,...

Latest publication

Other news

Advice firms step up technology use as integration remains key obstacle

Financial advice firms are taking a more proactive approach to technology, but integrating new...

Check launches mortgage readiness tool for prospective borrowers

Check.co.uk has added a mortgage readiness feature to its app, bringing together credit, affordability,...

Yorkshire BS team raises £1,000 with 198km treadmill challenge

Seven Yorkshire Building Society colleagues have completed a 198km treadmill ultramarathon to raise money...