Buy to Let Loans at two and a half year high � fuelled by Remortgaging

According to new figures, buy to let loans issued to Landlords are at their highest level for two and a half years.

The Council of Mortgage Lenders (CML) have recently carried out a survey and the results have show that 32,000 loans for Buy to Let were issued between March and June this year, this is the highest figure in any quarter since Q4 in 2008

This is a 16% increase, in comparison to the previous quarter and is a rise year on year of 29% which is great news for letting agents.

The vast bulk of activity in Q2 was in remortgages, with 65% of the rise in Buy to Let lending.

Nigel Terrington, who is CEO of specialist lender Paragon, recently said, “ Presents an interesting opportunity for rental property investors, The strongest level of remortgage business is interesting as it could be an indication that landlords are releasing equity in lowly gear properties, or properties without any borrowing against them, to help fund new purchases.

He also added, "Approximately two thirds of properties in the private rented sector are unencumbered and landlords could use this equity to help further develop their portfolios."

Kevin Cox of Bristol letting agent igloolets.com said “The buy to let market is boyant at the moment, and actually lending for Buy to let is easier to obtain than First time buyer mortgages. However, Landlords should still maintain, a watchful eye on the market, and certainly if extending their borrowings should make sure that rental arrears are kept in check”