Buy-to-let is enjoying a recovery, but from a low base following the financial crisis. The total number of new mortgages was 19% higher than in the preceding three months and buy-to-let mortgages now account for 13.3% of outstanding lending in the UK. Year on year, the amount of lending on buy-to-let mortgages has risen by 31%.
Around half of all buy-to-let mortgages were for house purchases but growth in remortgaging of 29% points to improved conditions in the mortgage markets encouraging landlords to seek more preferential loans.
Since the financial crisis lenders have been reluctant to lend to prospective buyers without a sizeable deposit. This has resulted in frustrated homeowners turning to rented accommodation while they save for a deposit.
However, anybody who thinks buy-to-let is a road to riches needs to do their homework. A good start would be to read these two articles - The Buy-to-Let Guide and Top Buy-to-Let mistakes .
