The Council of Mortgage Lenders has published figures showing that over 15,000 BTL loans were advanced in July – 12% higher than recorded in June. These loans represented a value of £2bn – an 11% increase over June.
For BTL house purchases, lending was up 7% in July from June, for a total of 7,600 loans with a total value of £900m, up 13% from June.
There was also strong growth in BTL remortgage lending, increasing in the same time frame by 24% at a value of £1.1bn. The number of loans was 7,200, 13% higher in July than in June.
Stephen Johnson, managing director of commercial mortgages at Shawbrook Bank, said, “At the moment lending conditions are very good but these are unusual times and the UK needs to create a sustainable market, not one lurching from peak to trough. Those looking to buy property need to ensure they look at the long term – investors need a portfolio that can still work in a more normalised interest rate environment. Sensible gearing will maximize returns, over-gearing now could potentially put at risk investors’ hard-earned equity.”
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