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Buy to let borrowing soars to post crash peak
23 February 2016
Buy to let lending was up 28% compared to the year before, according to trade body the Council of Mortgage Lenders, which is the voice of all the UK’s property investment lenders.
The amount advanced also increased by 35% year-on-year.
But the total advanced was £37.5 billion – which is way behind peak buy to let borrowing of £43.7 billion in 2007 and matching the £38 billion lent in 2006.
The 2015 borrowing is split £21.9 billion in favour of remortgaging against £15.6 billion for buying new homes to rent.
Paul Smee, director general of the CML, said: “Improving economic conditions, boosted by government schemes like Help to Buy, saw the highest quarterly number of loans to purchase a home for eight years.
“The market has seen a gradual upward trajectory over the past few years, rather than rapid growth, and we'd expect this trend to continue with gross lending steadily increasing over the next two years.”
Lending dropped back by 1% in volume and value in the last three months of 2015, but the CML explained this was not unexpected in the festive season.
Read more commentary and data from the CML here
UK Mortgage Gross Lending 2007 - 2015
Home-owner house purchase (in £millions)
Buy-to-let (in £millions)