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Posted by Let Alliance on June 16, 2014
The value of buy-to-let advances in the first quarter of 2014 reached £6.8bn, up 65 per cent from £4.1bn in the same period a year earlier.
Bank of England figures released today show buy-to-let lending accounted for 14 per cent of all mortgage advances in Q1 2014, up from 12 per cent in 2013.
First-time buyer advances also rose in Q1, up 51 per cent to £9.4bn from £6.2bn a year earlier. One in five mortgages advanced in the first quarter of 2014 was to a first-time buyer.
Remortgage loans totalled £12.9bn in value, up 29 per cent from £10bn in Q1 2013. This represents 27 per cent of all mortgages advanced in the first three months of the year.
Some 65 per cent of loans in that time period were at 75 per cent LTV or less, with 32 per cent between 75 and 90 per cent LTV. Some 3.1 per cent of mortgages were between 90 and 95 per cent LTV, almost double the 1.6 per cent seen in Q1 2013.
Anderson Harris director Jonathan Harris says: “With £9.4bn of lending done to first-time buyers, compared with £3.2bn in the first quarter of last year, government assistance and the general availability of more deals at higher loan-to-values have made it easier for them to get on the ladder.
“The buy-to-let market goes from strength to strength, with investors shunning poor rates on savings accounts and turning to property. Lenders are offering cheaper mortgages with looser criteria, fuelling the sector’s expansion.”
10 June 2014 Source: www.mortgagestrategy.co.uk