Buy-to-let lending saw a rise in March by both volume and value on the previous month, according to The Council of Mortgage Lenders (CML).

There were 16,200 loans advanced, up 56% compared to March 2013. The value of these loans totalled £2.2bn, up by 69% compared to March 2013.  

The number of new buy-to-let loans in the first quarter of 2014 rose slightly on the fourth quarter of 2013 to 47,000, up 1% on the previous quarter and 46% on the first quarter of 2013.

As landlords prepare to expand their portfolios, (see story above), buy-to-let re-mortgage lending saw the most substantial upward trend increasing month-on-month to 8,000 loans, up 13% in volume compared to February and up 67% compared to March 2013. These buy-to-let re-mortgages had a total value of £1.2bn, up 13% compared to the previous month and up 73% compared to March 2013. 

Karen Bennett, sales and marketing director of Commercial Mortgages at Shawbrook Bank, says: “The continued strength of the buy-to-let sector is evidence of the ongoing economic recovery and a sign of the favourable climate that the current low interest rates have created. However, with calls from the OECD and others for more controls on the housing market, we may see rate rises sooner than anticipated. We have always advocated sensible borrowing and property investors need to look closely at their portfolio and carefully consider whether to take on more properties. They need to make sure that their portfolios will generate enough income to cover mortgages if interest rates go up suddenly.”