Buy to Let Mortgage Approvals Show Confidence in the Market

18 August 2012 Categories: News

Buy to Let Mortgage Approvals Show Confidence in the Market

According to the Council of Mortgage Lenders the number of buy to let mortgage applications approved during Quarter 2 of this year was around 5% higher than Quarter 1 – a sure sign that both investors and lenders have continued confidence in the market. The number of buy to let mortgages approved during the quarter came in at 33,200 and totalled around £3.9billion in worth. This not only beat the 32,300 approvals of the previous quarter but also the 29,100 approvals reported during Q2 of 2011.

Of the 33,000 mortgage approvals around half were for new house purchases while the remainder were remortgages, many of which were performed in order to release equity for further property purchases.

It is thought the number of new applications has been bolstered by the increase in the average LTV, which now stands at 75%, and the continued low interest rates. The interest rates have also meant that the number of buy to let mortgage arrears has fallen to just 1.56%, as of the end of June.

Put all together, it seems that the private rental sector is continuing to attract the attention of both investors and lenders alike, which can only mean good things for the future.