Take-up of buy-to-let mortgages rose by almost half in 2003, however, the buy-to-let sector still makes up only 5% of the total mortgage market, according to figures presented by the Council of Mortgage Lenders.
Investors are still "piling into buy-to-let" argues the CML, as the total number of buy-to-let mortgages rose 48% to 408,300 in 2003 from 275,500 in 2002, from an estimated 24.2bn to £39bn, of which £11.7bn is gross new lending allocated within the second half of 2003. Average value of a new buy-to-let mortgage was £103,500 in H2 2003, says the CML, while the average percentage lent was 80%, on minimum rental cover of 130%. At the same time, however, arrears on buy-to-let lending remains lower than most other sectors as only one in 200 have mortgage arrears or three months or more. ...
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