Buy to let mortgages on the rise

As the number of residential mortgages has fallen, the demand for buy to let mortgages has continued to increase, new figures have revealed.

Research from Hamptons Mortgages indicated that the number of buy to let mortgages taken out rose by 23 per cent last year, finishing 2007 as representing more than 39 per cent of the UK's mortgage market.

At the same time, applications for residential mortgages fell by the same amount, 23 per cent, with short-term fixed rate mortgages experiencing a particular decline in popularity.

Jonathan Cornell, managing director of the firm, said: "This year review of 2007 mortgage trends highlights a clear swap in popularity between residential and buy to let mortgages."

"Interestingly the trends reversed by roughly the same amount over the course of a year; as have trends for fixed and variable rate mortgages."

A survey carried out last week by the Association of Residential Letting Agents revealed the likelihood of continued growth in demand for buy to let mortgages, with four out of ten landlords expecting to expand their portfolio this year.

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