Mortgage market up 7% in 2010

The buy-to-let  mortgage market grew by 7% in 2010, according to the Council of Mortgage Lenders (CML).

In addition loan performance in terms of arrears improved as strong rental demand continues the CML reported.

There are now 1.3m buy-to-let mortgages worth £152bn and that accounts for 12% of the whole mortgage market. The value of lending in 2010 rose 22% to £10.4bn, with the average size of the loan increasing to more than £100,000.

The CML concluded that home buyers’ are finding It difficult to raise the size of the deposit they require to buy so this is increasing demand for rental properties. They also said that the buy-to-let market will continue to benefit from this.Their main concern for the health of the buy-to-let mortgage market is rising interest rates and the potential for rental arrears.

Trending buy-to-let mortgages