Letting reaches 'annual high'

News Category: Industry News

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The number of buy-to-let mortgages taken out in September increased by a higher amount than in any month during the past year, a survey has found.

Spicerhaart Financial Services revealed that 58 per cent more borrowers took out a buy-to-let mortgage last month.

Steve Cox, operations director at the firm, said the findings show that investors view buy-to-let as a safer investment option than shares or saving deposits.

The findings follow speculation that the industry was struggling because of the effect of the credit crunch on the money markets - symbolised by the demise of British buy-to-let lender Bradford & Bingley.

"It is clear that borrowers do not share these views, with experienced landlords seeing this as a prime opportunity to buy properties at a reduced price," Mr Cox said.

A survey published earlier this month by Paragon Mortgages found that 51 per cent of landlords experienced higher tenant interest in the third quarter of 2008 compared to the previous three months.

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