Buy-to-let mortgage activity remained subdued in January with landlord investors taking out just 5,500 new buy-to-let home purchase mortgages, down 1.8% on the corresponding month last year, according to the latest figures from UK Finance.
However, buy-to-let mortgage activity in January did mark an improvement on the 5,100 new buy-to-let home purchase mortgages secured a month earlier.
According to the industry body, the total value of new buy-to-let loans reached £800m in January, up from £700m in December, reflecting the fact that more buy-to-let investors are actively looking to commit to investing in buy-to-let property.
Alastair McKee, managing director of One77 Mortgages, said: “Although the buy-to-let sector continues to see landlord appetites dampened as a result of tax changes, stamp duty increases and an impending ban on letting fees, this decline is starting to slow which again is good news.”
The data also shows that there were 15,800 remortgages in the buy-to-let sector in January worth £2.5bn, down from 16,500 remortgages worth £2.6m a year ago.
Remortgaging figures for January is up from the 12,400 buy-to-let remortgages completed in December, which by value was £2bn of lending in the month.
“The slight softening in remortgaging figures for [the buy-to-let] sector suggests landlords remain committed to the market,” said Matt Andrews, managing director of mortgages at Masthaven.
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