New data from the Bank of England confirms buy to let borrowing is powering ahead and has climbed back to the highest level for eight years.

With total lending of £27.4 billion in 2014, buy to let took a 13% share of all residential mortgage advances and a 15% share by value of loans.

The figures include new purchases and remortgages, which take almost equal shares of borrowing with remortgages slightly ahead.

The resurgence of buy to let lending is explained as more lenders came to the market after the financial crisis and an easing of money market borrowing by lenders to pass on at lower interest rates to landlords.

However, the Bank explains in the report Trends in Lending that the number of loans and amount advanced to landlords is still far below the buy to let bonanza years of 2006 and 2007.

The Bank draws the figures from mortgage trade body The Council of Mortgage Lenders and the Financial Conduct Authority.

“Gross lending has grown since 2010 reflecting supply and demand factors,” says the report. “Over the past five years, the share of buy to let lending as a share of overall mortgage lending has picked up and is now higher than in the pre-financial crisis period.”

Not only does the study confirm that the buy to let market is expanding, but also discloses that mortgage loan to values have increased from 75% to 80% in some cases and that buy to let interest rates are significantly cheaper now than in the post-crisis year of 2008.

The only black mark is repossessions. Although buy to let mortgage arrears are lower than those of residential mortgages, the repossession rate is twice as high as lenders are less likely to show forbearance to landlords than private owners.

The Council of Mortgage Lenders keeps records of year-to-year buy to let lending, which has been compiled into the table below.

The figures include buy to let remortgages and loans for new purchases.


Mortgage advances

Total borrowing (billions)

1999   44,400


2000   48,400


2001   72,200


2002   130,000


2003   187,600


2004   226,000


2005   223,100


2006   319,200


2007   346,000


2008   225,300


2009   88,400


2010   85,200


2011   114,900


2012   130,300


2013   160,900


2014   197,700


Source: Council of Mortgage Lenders