Buy-to-let continues to grow, says CML

Buy to let is continuing to grow, with 58,000 new loans worth £5.5bn taken out in the first half of the year, according to figures from the Council of Mortgage Lenders (CML). This compares with 42,000 loans worth £4.1bn in the six months before. However, more than a third of the new advances in the first half of the year were remortgages. The average LTV remains 80% for the third year running and rental income to cover mortgage payments averages at 130%, unchanged since 1998. Arrears have improved, the percentage of buy-to-let properties three months or more in arrears is 0.5%, compared to 0.55% in the second half of last year.