Surge in landlord mortgage borrowing | News | News and Articles | B P Collins LLP Solicitors
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18 March 2016

Surge in landlord mortgage borrowing

Buy-to-let lending soared in January as landlords rushed to secure properties ahead of the looming stamp duty increase, figures show.

The Council of Mortgage Lenders (CML) reveals loans worth £3.7 billion were handed out during the month, up 42% year-on-year. 

Re-mortgage loans made up the bulk of the total for landlords, while house purchase loans jumped 40% to £1.4 billion. 

From April, landlords in England and Wales will have to pay a 3% surcharge on each stamp duty band. 

The Royal Institution of Chartered Surveyors expects to see a drop-off in sales of investment properties as the hike approaches. In the longer term, however, it predicts general property values  will increase by around 25% over the next five years amid a lack of supply.

Homeowners took out £5.8 billion-worth of re-mortgage loans in January, according to the CML, up 32% year-on-year.

Rock-bottom interest rates have been keeping mortgage costs relatively cheap, helping homeowners secure a better deal.

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