The amount outstanding for buy-to-let loans is now equivalent to the GDP of Hong Kong, according to data released by the Council of Mortgage Lenders (CML).

Lending for buy-to-let loans has reached its highest point since 2008, before the financial crisis. Loans to property investors now make up over 70 per cent of the growth. There are now more mortgage products available to landlords, helping the level of lending to reach £33bn this year alone, while the number of loans is still increasing.

The figure for buy-to-let loans in July this year, rose by 33 per cent in comparison to the same month last year, while the number increased by 14 per cent in comparison to June this year. In contrast, the number of first time buyer mortgages increased by seven per cent year on year. However, despite the rapidly increasing number of buy-to-let loans, the figure still has a way to go before it reaches its highest point in 2007 of £45 million.

Around 25 per cent of buy-to-let loans are for properties in London, which is almost double the number of homebuyer mortgages in the region. The Bank of England recently issued a warning that buy-to-let loans could be a risk to the stability of Britain’s economy. The bank stated that if house prices were to drop, landlords could be under increased pressure.

Mortgage advisers have taken CeMAP Courses, which means that they are able to offer advice to anyone buying a home, including landlords and investors.

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