The value of buy to let loans advanced by finance houses across the UK in the second quarter of this year was 28% up on the same quarter of 2023.
This is according to UK Finance, the lenders’ trade body.
In Q2 2024 there were 51,459 new BTL loans worth £8.9 billion.
The average interest rate across all new buy to let loans in the UK was 5.19% in Q2 2024; some 21 basis points lower than in the previous quarter, but 0.04 basis points higher than in the same quarter of 2023.
The number of BTL fixed rate mortgages outstanding in Q2 2024 was 1.4 million, 2% up on a year previously. In contrast, the number of variable rate loans outstanding fell by 14.8% to 565,815.
At the end of Q2 2024 there were 13,570 buy to let mortgages with arrears greater than 2.5% of the outstanding balance. This was up 51% on the same quarter a year previously.
There were 710 buy-to-let mortgage possessions taken in Q4 2024, up 33.8% on the same quarter in 2023.
Paragon Bank Mortgages’ commercial director Russell Anderson says: “The figures reveal strong growth in total gross lending, in both the value and number of loans written, since the previous quarter and when compared to the same period in 2023. Drilling down into the data, we that the maturities continue to be a key driver of business, with remortgaging during the quarter valuing £6.2bn, the highest since the end of 2022. Encouragingly, we also see that landlords are actively growing their portfolios, with the value of purchases increasing consecutively during the last three quarters to £2.4 billion”
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