You are here: Home - Mortgages - Buy To Let - News -

Buy-to-let lending at eight-year high

0
Written by: Christina Hoghton
09/03/2016
Buy-to-let lending has reached its highest level since 2007, according to figures from 300 lenders.

They reported lending of £10bn in landlord mortgages in the final quarter of 2015, compared with £7.7bn a year earlier.

The proportion of buy-to-let lending increased to 15.9% of total lending, while balances outstanding on landlord mortgages in the final quarter of 2015 climbed to £178.2bn.

The quarterly report, Mortgage Lenders & Administrators Return (MLAR), is completed by regulated lenders, which include banks, building societies, credit unions and other specialist lenders, to cover mortgage transactions.

Rates down

Overall product interest rates fell to their lowest level in quarter four since the series began in 2007.

In the final quarter of 2015, the average interest rate fell to 2.71%. Fixed-rate products continued to be the dominant product type, increasing slightly in popularity and accounting for 84% of all product types issued, up from 81% in quarter three and 82% in Q4 2014.

Affordability

The data revealed that borrower affordability remained stable in Q4 2015. Sole borrowers taking out mortgages with an income multiple of more than four times their income increased by 0.5% to 10.2% of total loans.

Joint applicants borrowing more than three times their income increased by just less than 1% over the quarter to reach 30% of all mortgage transactions. Gross mortgage lending at loan-to-values (LTV) of more than 90% fell back by 0.1% over the quarter to 3.2%.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
‘Exploding egg caused £3k of damage’: 10 bizarre insurance claims revealed

An exploding egg, wild horses and Morris dancing top the list of the most unusual and unlucky home insurance claims...

Close