Data from the Council of Mortgage Lenders (CML) released last week showed that buy to let lending accounted for 13.4% of the estimated £33.8 billion worth of mortgages lent in the first quarter of 2013.
Around 33,500 mortgages worth a total of £4.2 billion were advanced to buy to let landlords between January and March, roughly half of which were remortgage loans. This is compared with £3.7 billion in the same period in 2012, though the total was a decrease from the £4.6 billion worth of buy to let mortgages lent in the preceding three months.
However, the proportion of the total market accounted for by buy to let has consistently risen over the last year; 12.9% of outstanding mortgage lending was for property to let in the first three months of 2012. The number of buy to let mortgages in arrears as a proportion of the total also decreased, from 10.5% in Q1 of 2012 and 9.0% in Q4 of 2012 to only 8.3% in Q1 of 2013.
The possession rate has fallen to 0.11%. However, this reflects a disproportionate number of total repossessions; around one in five (20%) of the 8,000 repossessions in the last three months were on buy to let properties.
CML estimates that of the 11.26 million mortgages currently outstanding in the UK, some 1.46 million are buy to let – accounting for around 13% of the total mortgage stock. The current worth of the total UK mortgage stock is over £1.2 trillion.
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