Buy-to-let mortgage uptake low last month, but market set to be 'boosted'

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The number of people taking out buy-to-let mortgages decreased slightly in February, it has been revealed.

According to the mortgage monitor from John Charcol, buy-to-let mortgage purchases accounted for 3.1 per cent of the market last month, compared with 3.5 per cent in January.

It was also revealed that the number of buy-to-let remortgages edged up during this period, with remortgages accounting for nine per cent of the market in February, representing an increase on two per cent on the previous month's figure.

Katie Tucker, technical manager for John Charcol, maintained that, despite the fall in buy-to-let purchases, the market would be stimulated in 2008 by first-time buyer difficulties.

"Remortgages for buy-to-lets were up in February compared to January, but new purchases for buy-to-lets remained low.

"Britain will be reluctant to fall out of love with amateur landlordship however: buying-to-let should be boosted this year, as first-time buyers who were stalled at the starting line, continue renting, thus improving rental yields."

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