17 February 2015
NEW figures have revealed that the continuing low interest rates for savers are fuelling a buy-to-let boom.
The statistics echo the experience of Linley & Simpson, which has witnessed an upturn in the number of families making their first f
- The value of buy-to-let mortgages on new purchases rose by 34 per cent to £11.6 billion between January and November last year £3 billion more than the same period in 2013.
- The number of landlords taking out mortgages on new purchases in the UK also grew by 21 per cent to 93,970 between January and November 2014 with 8,500 handed out every month.
- The trend peaked in November signalling further growth being carried over into 2015 - as lending to landlords soared by 9 per cent compared to the year before.
- Some 17,700 buy-to-let loans worth £2.4 billion were handed out in November as desperate savers turned to the housing market for a return on their money.
While buy-to-let mortgages are more expensive than normal owner-occupier mortgages, rates have plummeted to such an extent that loans are available with as little as 2.29 per cent interest - making it an affordable option for many Yorkshire savers for the first time.
This trend is expected to accelerate in April when a relaxation of pension rules come into force, freeing up billions of pounds in people's retirement pots to be used as property investments.