View more on these topics

John Charcol: Let-to-buy activity up 40% in 2012

London-brokerage John Charcol saw a 40 increase in let-to-buy deals in 2012 which it says is a sign of the growing demand for rental property.

Under let-to-buy, a borrower rents their existing home in order to buy a new main residence.

John Charcol senior technical manager Ray Boulger says: “The proportion of our clients choosing let-to-buy when they were moving home fell year on year by 37 per cent in 2009, the same year that buy-to-let lending generally hit rock bottom.

”However, the subsequent bounce back has been even more pronounced than in the buy-to-let market generally. We saw an increase of 45 per cent in let-to-buy lending in 2010, modest growth of only 10 per cent in 2011 and then a further surge last year with an increase of 40 per cent.”

The increase comes in the wake of strong buy-to-let lending figures last year. The Council of Mortgage Lenders reported gross buy-to-let lending of £16.4bn in 2012, representing 11.5 per cent of the total market.

Boulger says although let-to-buy only accounts for a modest part of this increase in buy-to-let lending, some homeowners obtain permission to let from their mortgage lender, thus retaining their existing residential mortgage, rather than remortgage to a buy-to-let deal. So the actual number of mortgages supporting the buy-to-let market are likely to be in excess of the Council of Mortgage Lenders’ figures.



MPs warn Govt could face big Help to Buy losses

The Treasury select committee has warned the Government it could face “large losses” under its Help to Buy scheme as it fails to take account of the “unintended consequences” of the programme. The TSC’s Budget 2013 report, published today, expressed concern that the Treasury now has an active role in the mortgage market and a […]

Sifa partners with Carey Pensions UK for auto-enrol range

Solicitor and adviser trade body Sifa has chosen Carey Pensions UK to provide an auto-enrolment proposition for law firms. The Lawstaff Pension Trust can be white-labelled for Sifa member firms and complies with The Pensions Regulator reporting requirements. Investment management will be provided by Seven Investment Management. Carey Group, parent company of Carey Pensions, administers […]

Barclays places around 750 ING Direct roles at risk

Barclays has placed around 750 ING Direct staff on consultation after completing its acquisition of the firm’s £10.9bn deposit book and £5.6bn mortgage book. Barclays will integrate both ING Direct books, which are now known internally as Barclays Direct, into its existing retail banking business over the next 24 months, meaning there will be duplicate […]

US loan growth is not painting a pretty picture for the US economy

Written by Mike Riddell One of the current big debates in global financial markets is whether investors should believe ‘hard’ rather than ‘soft’ data, where the usually reliable business and consumer surveys have been suggesting strengthening in global growth momentum for some time now, while the economic data that feeds through into the Gross Domestic […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm