November saw buy-to-let lending up 30% on 2012

The number of buy-to-let loans taken out in November was 16,200, the same volume as October. The Bank of England reported earlier this month that UK gross mortgage lending was £17 billion in November, a 4% decrease compared to October but 30% higher than the total of £13.1 billion in November last year.

Lucy Hodge, Director of Vantage Finance said:

"Today's figures round up a very interesting story for the BTL market in 2013. Confidence grew significantly over the year, and as we've moved into 2014 this has continued - we've seen very strong business even in the first two weeks of January 2014.

“Lenders are providing innovative products which are helping to bolster demand and open up the market to a wider and more diverse base of investors. Interbay, for example, this year launched a new BTL product at 85% LTV. The prediction that Help to Buy has hindered the market has not been reflected in our business or the business of our brokers, as was debated by the industry late last year. These figures show yet more good news for the sector and I am confident the BTL market will continue to grow into 2014.”

Karen Bennett, Sales & Marketing Director, Commercial Mortgages, Shawbrook Bank Limited said:

“The property market is continuing to show real signs of recovery – boosted by the buy-to-let sector. Looking around the sector, lenders are bringing a range of new products to the market in response to this demand and we are seeing some real innovation. However, we still need to be aware of the need for a responsible and sustainable industry. The new products aimed at property investors need to take into account interest rate rises when they occur. The forthcoming MMR guidelines show the importance of stress testing throughout the mortgage industry. This includes commercial mortgages, and property investors need to ensure that their property portfolios will generate enough income to cover mortgages once interest rates go up.”