Bank of England report shows BTL rise
The latest Bank of England report on the Buy-to-Let market has underlined the continuing growth in the sector.
Statistics from the report show that Buy-to-Let mortgages represented15% of the overall outstanding residential mortgage loans at the end of 2014. Gross advances of new loans have recovered to reach the same levels as in 2005.[1]
Encouraging
Statistics from the report show that overall gross lending stands at £27.4bn. This reflects the major increase in supply and demand, with Buy-to-Let now accounting for 45% of all house purchases in the residential sector. Buy-to-Let remortgages have followed a similar trend, increasing to 52% of all transactions. This can be attributed to a larger variety of products and reductions in specific criteria.[2]
Additionally, the number of Buy-to-Let products widely advertised has more than doubled since the end of the financial crisis. Despite the majority of loans standing below 75% Loan to Value (LTV), there his been a rise in loans between 80-85% LTV since 2013.[3]
Bank of England report shows BTL rise
Possession orders
More encouraging news came with the Council of Mortgage Lenders (CML) indicating that arrears on Buy-to-Let lending fell again during 2014. However, the rate of possession for Buy-to-Let properties was double that of owner-occupier homes. The CML suggested that this was down to lenders offering more options and often more time to help owner-occupiers to battle through periods of financial hardship.
[1-3] http://www.property118.com/bank-england-report-buy-to-let-market/74174/