Buy To Let Market In The UK Buy Rebounds In Q2
New loans aimed at the buy to let properties are on a surge owing to the fact that their overall value has risen by just over 20 percent in the 2nd quarter of this year.
This is driven primarily by remortgaging. There were over 31,000 buy to let loans that were valued close to 3.4 billion pounds, which were taken out in the April-June period. This happens to be the largest number or value since 2008’s last quarter. This will mean that a lot of possible renovation and fixes will be going on and contractors, masons and carpenters will all benefit from this surge. Not to mention those who are looking somewhere to let.
Re-mortgaging was responsible for around 64 % of the general hike in buy to let loans during the quarter. And the underlying value of those over 15,000 loans for re-mortgaging (some £1.6 billion pounds), was 27 percent more compared the value during the 1st quarter and this was responsible for just over 52 percent of the total buy to let lending, which is an increase from the 51 percent during the previous quarter.
The value as well as the number of buy to let mortgages still outstanding has kept on growing, the figures showed. When the 2nd quarter ended, buy to let mortgages totaling 1.34 million (which are valued at 154.5 billion pounds), were outstanding. That was more than the 1.26 million (were worth 148.8 billion pounds) at the last part of the same quarter in 2010.
Though this hike in this quarter is important, the market now runs at about 33 percent of what was observed when lending was at its peak during 2007. For the very first time ever since 2008, the arrears rates on buy to let mortgages have come down to less than that of the owner occupied sector.
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