Buy-to-let mortgage growth 'reflects increasing investor population'

The range of different mortgage products on offer at the moment bears witness to the fact that the industry is growing more reflective of consumers' individual needs, it has been claimed.

Sue Anderson, a spokesperson for the Council of Mortgage Lenders, said that a number of new mortgage lenders had entered the market in recent years, catering to niche requirements.

While buy-to-let mortgages remain minority products, there is a growing range of investors who are taking advantage of them, she explained.

She said that mainstream home loans financing owner-occupation still make up the bulk of the market, but at the margins there is still "significant market opportunity" for niche mortgages.

Ms Anderson commented: "We have got this very diverse population, and also an increasing investor population as well who are looking to invest in property as well as live in it, and the financing that's available is really very wide ranging to cater for all those needs."

The latest predictions from market research firm Mintel are that the number of new buy-to-let mortgages sold is to grow by 53 per cent by 2011.

Landlord Mortgages “Whilst the market has seen great innovation it is highly unlikely to innovate further without compromise. The compromise may result in lenders being forced to be less risk averse. However, whilst risks seem to be more apparent today the long term future looks good for Buy To Let.”

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