March 4, 2010
Buy To Let Lending Increases
“It's a great relief for investors that buy-to-let finance is starting to get to get easier to find. The numbers of loans advanced has climbed steadily for two consecutive quarters, and lenders are gradually loosening their purse-strings…"
David Brown, Commercial Director of LSL Property Services, comments on the CML Buy-to-let mortgage figures.
He said:
“It's a great relief for investors that buy-to-let finance is starting to get to get easier to find. The numbers of loans advanced has climbed steadily for two consecutive quarters, and lenders are gradually loosening their purse-strings. The buy-to-let mortgage market is returning. But it will be a marathon, not a sprint - the number of new loans in 2009 is still only a quarter the levels we saw in 2007.
"But we're not going to see any change in the imbalance between supply and demand. As the market improves we're seeing a growing demand from potential property investors. With house prices rising, projected annualised total returns hit nearly 16.75% in January.
"With so few specialist lenders offering products for buy-to-let investors, mainstream lenders need to cater to the growing demand from investors to play their part in the continuing recovery of the buy-to-let market.”
