The buy-to-let market is propping up mortgage lending as home purchase and remortgage lending declines, according to the Council of Mortgage Lenders(CML).
The CML’s latest figures, taken prior to the bank run on Northern Rock, show the lending market has stabilised in July and August. Total gross lending in August reached £34bn, slightly less than the £34.1bn seen in July and £1bn higher than the same period last year. However, the proportion of lending for home purchases and remortgage fell 11% and 12% respectively compared with last year. By contrast, other lending, mostly made up of buy-to-let loans, is now 37% higher than in August 2006, according to the CML. The CML says the reasons for strong growth in the buy-to-let sector are h...
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