This compares favourably with recently-released data from the Council of Mortgage Lenders showing gross lending across the industry fell by 18% in February. UK gross mortgage lending in February 2005 was £17.2billion, compared to £21.1billion in February 2004.
CHL says that the increase shows that it is increasing its market share at the expense of other lenders.
Mike Healy, Head of Sales at CHL and IP, said: “These figures show that when the market is tough, those with the best products are able to increase their market share to the detriment of other lenders. They are testament to the very competitive range of products we now have in both the self-certification homeloan and buy-to-let markets. Both CHL and our supporting intermediaries have benefited from our product offering.”
Part of the hike in sales is being attributed to CHL’s 4.75% buy-to-let two-year fixed-rate mortgage. The product is fixed until 31 May 2007 and undercuts the next most competitive product by some margin.
Maximum loan-to-value is 85% and rental cover is 125% of the mortgage payment calculated at the 4.75% pay rate. Many lenders calculate rent cover as a percentage of their Standard Variable Rate, rather than as a percentage of the actual rate taken.