Buy to Lets Boosted

The buy to let market is booming as people are being forced to continue to rent due to the credit crisis. Uncertainty in the market has made people cautious and unwilling to enter the property market at present.

With lenders tightening their criteria, mortgage rejections have risen 60% in the last six months helping the buy to let market even more.

Since March 2007 lenders have rejected 738,000 loan applications, according to Money Experts.

Buy to let loans remained strong but residential homebuyer mortgages were down 20%.

Repossessions and payment arrears are lower for buy to let investors than for residentials because the generated money generally pays the mortgage repayments. The more experienced landlords tend to be older and have higher incomes and assets that many residential buyers do not have.

The buy to let industry is now worth £104bn on lending and accounts for 10% of all mortgages and 12% of new mortgages.

It has been predicted that there will be a 15% growth in buy to let mortgages over the coming year.

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