Buy-to-let lending at eight-year high
Buy-to-let lending is booming, according to new data, having reached its highest point since 2007, according to figures from 300 lenders.
They reported lending of £10bn in landlord mortgages in the final quarter of 2015, compared to £7.7bn a year earlier.
The proportion of buy-to-let lending had increased to 15.9% of total lending, while balances outstanding on landlord mortgages in the final quarter of 2015 climbed to £178.2bn.
The quarterly report, Mortgage Lenders & Administrators Return (MLAR), is completed by regulated lenders, which include banks, building societies, credit unions and other specialist lenders, to cover mortgage transactions.
Overall product interest rates fell to their lowest level in Q4 since the series began in 2007.
In the final quarter of 2015, the average interest rate fell to 2.71%. Fixed-rate products continued to be the dominant product type, increasing slightly in popularity and accounting for 84% of all product types issued, up from 81% in quarter three and 82% in Q4 2014.
The data revealed that borrower affordability remained stable in Q4 2015. Sole borrowers taking out mortgages with an income multiple of more than four times their income increased by 0.5% to 10.2% of total loans.
Joint applicants borrowing more than three times their income increased by just less than 1% over the quarter to reach 30% of all mortgage transactions. Gross mortgage lending at loan-to-values (LTV) of more than 90% fell back by 0.1% over the quarter to 3.2%.