The number of buy to let mortgages is still rising – up almost a quarter in the past year, according to the Council of Mortgage Lenders (CML).
Landlords borrowed £2.2 billion in June, the last month data is available for.
That was a 5% rise of May 2014.
In total, 15,600 buy to let mortgages were advanced – 8,200 worth £1 billion were for purchasing new investment property – down 1% from May but up 24% year-on-year.
The rest were for remortgages – 3% higher than May and a 31% year-on-year increase.
Paul Smee, director general of the CML, said: “For the second month running since new lending rules took effect, lending characteristics remain similar to the market beforehand.
“We now feel confident that the effect is gentler dampener than hard brake. As we recently suggested in our revised forecasts, lending levels should continue to increase modestly over the course of the year, driven mostly by house purchase but with remortgaging also recovering.”
Meanwhile, buy to let mortgage lenders have shuffled the pack and introduced several new deals and pulled some others.
Coventry Building Society’s buy to let arm Godiva is offering landlords several new buy to let deals, including two flexible variable rates – one at 2.55% at 65% loan to value which comes with a £250 booking fee and £1,749 arrangement fee.
Precise Mortgages has a new 80% loan-to-value buy to let mortgage...at 3.5% as two-year tracker with a 2.5% arrangement fee. A two-year fix at 4.09% is also available with a 2.5% fee.
NatWest has cut the rate on a five-year fix at 60% loan to value from 4.79% to 4.59%. The buy to let loan is only available through brokers.
Leeds Building Society is continuing a recent revamp of buy to let mortgages with two new five-year fixes – 3.64% up to 80% loan to value with a free valuation and a fee of £399 and 3.54% up to 75% loan to value with a £599 fee.©LandlordZONE® – legal content applies to England and is not a definitive statement of the law, always seek professional advice. If you have questions on these issues go to the LandlordZONE® Forums