Buy-to-let lending declining

Buy-to-let lending declined during the first half of 2008 but at a lower rate than that experienced by the rest of the market, the Council of Mortgage Lenders (CML) revealed.

The number of new buy-to-let loans issued in the first half of 2008 decreased by 18 per cent.

Comparatively, the number of loans issued to first-time buyers and existing homeowners dropped by 28 per cent.

Commenting on the latest figures, CML director general Michael Coogan said: "The shortage of mortgage funding is creating similar problems for buy-to-let landlords as it is for other borrowers. However, we expect the rental market to remain underpinned by strong demand, partly because some people who would like to buy a home are being forced to carry on renting for now."

Despite the overall decline in new buy-to-let mortgages, there has been an overall rise of 19 per cent by volume and 25 per cent in value of buy-to-let mortgages compared to a year ago.

According to the BBC, 0.16 per cent of buy-to-let homes were repossessed in the first six months of 2008.

Mortgages News posted on 26/08/2008 16:54:52