Hampton Mortgages says that buy-to-let purchase mortgages taken out in January increased by over 5 per cent compared to December 2007.
In December 2007 BTL purchase mrotgages were at 39.53 per cent, this increased to 44.54 per cent in January 2008.
The broker’s January best buy mortgage tracker’s figures reveal that the BTL market remains resilient against the credit crunch.
In comparison to this time last year, proportions of BTL purchase mortgages taken out by Hamptons customers have increased by a massive 33.43 per cent (11.11 per cent January 2007 to 44.54 per cent January 2008).
Home purchase loans also saw a slight growth last month – up by nearly 2 per cent (13.18 December 2007 – 14.85 per cent January 2008).
Although this figure was down 12 per cent on January 2007 (26.67 per cent January 2007 – 14.85 per cent January 2008), this marginal increase signals that despite tightened lending criteria and lack of mortgage funding, borrowers are still able to get onto the property ladder.
Managing director Jonathan Cornell says: “I would hope that 2008 will signal a positive year for buy-to-let and residential borrowers alike. It cannot be argued that amidst all of this doom and gloom, it is nice to see a glimmer of hope on the horizon.
“The large proportion of buy-to-let loans taken out by Hamptons customers at the beginning of 2008 is a marked contrast to the number taken out in January 2007 and this is a positive signal that the buy-to-let sector stands in good stead for a healthy 2008. I would also hope that February’s rate cut will install some much needed liquidity back into the market and restore a little consumer confidence.”