According to Council of Mortgage Lenders’ (CML) figures, new lending of £4.1bn over the last six months, through 41,000 loans, has brought total lending in the buy-to-let sector to £14.7bn. The average loan to value ratio remains steady at 80% with an average rental cover of 130%. The CML has, for the first time, included buy-to-let remortgage data, showing that nearly 40% of advances were to borrowers changing lenders.
Peter Williams, CML’s deputy director general said: ‘Buy to let continues to be an attractive option for investors, particularly at a time when stock market returns are looking uncertain. But borrowers need to view buy to let as an investment for the long term over which it offers prospects for both capital growth and income.’