For the first time since 2007, gross lending in the BTL mortgage sector grew in Q3 (£2.1B) by 10% over Q2, according to the Council of Mortgage Lenders.

Lending for purchase and remortgage grew in Q3 with purchases being the stronger. This is probably due, for the most part, because remortgaging above 80% Loan-to-Value is not currently available and landlords with higher LTV's can only sit tight on existing reversion rates until more favourable conditions prevail. 

Michael Coogan, DG/CML, said, "... although the recovery is modest, the figures show that buy-to-let is here to stay ... buy-to-let lenders are among those facing some of the biggest challenges in raising mortgage funding, so the improved figures are all the more welcome. Future demand for housing in all tenures supported by lenders will remain strong, despite mortgage funding constraints and low construction rates."

Coogan added, "... with funding for social housing under pressure, the private rented sector has a strong future ... Mortgage lenders will have an important role to play in it, and will continue to help improve choice and standards for private tenants".

source Mortgage Solutions

What We Say ~ The above is good news for BTL investors as more key commentators feel bullish about new mortgages in general and the BTL sector in particular. Reducing lending rates must help more landlords weather the current economic storm provided they were not overgeared i.e. total borrowing against total portfolio value, in the first place.  Buying at 25% below market value builds in a significant hedge against any further drop in current market values though given our increase in demand for BMV's at this time, we share the view of pundits who believe we are rounding the bottom of the market about now.  

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