Lending figures are increasing rapidly

Buy-to-let lending saw its highest monthly increases in July and August since stamp duty changes were introduced.

Landlord borrowing was up 11.4% for the two months, although this figure was 2.2% down on the previous year. Over two-thirds of buy-to-let loans were re-mortgages rather than house purchases. Buy-to-let lending, driven by re-mortgage activity saw its strongest monthly lending level since the stamp duty changes on second properties was introduced.

It’s expected now buy-to-let lending levels in 2019 will be slightly higher than in 2018.

Forecasts for 2019 have definitely taken a turn upwards which in general has surprised the market. Suppliers have been very quick to recognise this trend and produced more than usual seasonal deals to match the increase in interest.

While the regulatory changes to property investment are challenging, the property market will continue to offer strong returns to those who take an intelligent and level-headed approach to their portfolios.

The majority of landlords are confident that the future is strong as property in the UK still offers a sound return on investment. A good number of landlords have incorporated their business to help reduce the tax liability, and this route seems to be very popular with new entrants into the letting market. Once again lenders have been quick to recognise this and have produced more limited company buy-to-let plans at much reduced rates.

If you are looking for a new or re-mortgage, please do make contact and one of our qualified fully independent advisers will be happy to assist.