The buy to let market posted some impressive numbers between April and July, especially in the area of remortgages.  According to the Council of Mortgage Lenders, BTL lenders approved mortgages totaling 3.5 billion pounds during that four month period, and remortgages accounted for 65% of the total.  This qualifies the period as one of the busiest on record since the 2008 crisis set in.  The CML also reported 32,000 loans were approved during the span, but it still falls far short of the normal figures seen during the prosperous lending days of 2007.

The reason for higher demand in the buy to let market – tighter lending criteria is forcing many Brits to look at renting as an option.  This condition discussed by many, could become the new norm for a period of time.  Consistently low wages combined with elevated inflation and strict lending habits have become a recipe for much success in the buy to let market. 

The close of the second quarter of this year saw an increase of 6 billion pounds in lending to 154.5, compared with the same time last year.  There were also 800,000 more buy to let mortgages completed during the same period, bringing the total to 1.34 million.

Another area of success within the buy to let market was the number of arrears.  For the first time in three years, arrears rates for buy to let mortgages were lower than the owner occupied sector.  Unfortunately however, repossessions in the buy to let market increased by 200 to 1,900 from the first quarter to the second.

Paul Smee, director of the CML, commented on the latest figures from the buy to let market, saying: "This is encouraging news for those who want to rent, as long as it is realised that much of the current increase is for remortgage rather than house purchase."