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.