A report produced by the Council of Mortgage Lenders has shown an increase in the second quarter of 2012 of 5% for buy to let lending.
In the three months up until June, Lenders advanced 33,200 loans worth £3.9bn compared to 32,300 loans worth £3.7bn in the first quarter of 2012.
Even growth in purchase and remortgages for landlords
Growth in the buy to let market was shared evenly between loans for property purchases and remortgages, with a 3% increase for each compared to the first quarter of 2012.
Year on year figures show that lending for the purchasing of property is up 17% by volume and 21% by value while remortgaging has increased by 10% volume and 15% by value.
Unchnged lender LTV & rental cover criteria
The average maximum LTV (loan-to-value) available on buy to let mortgages remains at 75% and the average maximum rental cover stays at 125%. These figures have remained fairly unchanged over the last 3 years.
After hitting a low in 2009, the current recovery in the buy to let mortgage market is still one-third below the lending volumes seen in 2007.
CML director general Paul Smee commented:
"Buy to let is continuing to show signs of recovery, and growing broadly in line with expectations. The rental sector has grown strongly over the last decade or so, and buy-to-let continues to help deliver a wider choice for tenants."