Buy to Let Growth Continues
Lending in the buy to let market continues to buck the trend of relatively flat lending in the broader mortgage market, now up 65% since the market low in Q2 2009. However, at one third of peak levels, lending remains well below healthy levels. Our current projections are for buy to let lending to continue on this trend, with volumes expected to more than double by 2015.
The threat to this may be in the form of increased regulation on the back of the Mortgage Market Review and a proposed directive from European Parliament. Investors may eventually be required to demonstrate sufficient cash flow to cover mortgage payments, meaning that some current mortgagors could find it difficult to move to a new mortgage product after this time. The results of the MMR are due in the summer 2012 and it is likely that proposals will come into force in 2013. Meantime, a Capital Private Finance adviser would be happy to speak to you if you would like to discuss your options in more detail.