Buy-to-let remortgages have hit a new high of £1.1 billion, according to a new report.

Yesterday’s CML report on trends shows that the quantity of BTL loans has steadily grown over the past year.

Karen Bennett, Sales and Marketing Director for Shawbrook Bank Ltd, said: “The property market is continuing to show real signs of recovery – boosted by the buy-to-let sector. Looking around the sector, lenders are bringing a range of new products to the market in response to this demand and we are seeing some real innovation. However, we still need to be aware of the need for a responsible and sustainable industry.”

BTL remortgage lending increased to 7,700 loans by November last year, up 1.3 per cent from October.

Lucy Hodge, Director of Vantage Finance, said: “Lenders are providing innovative products which are helping to bolster demand and open up the market to a wider and more diverse base of investors. InterBay, for example, this year launched a new BTL product at 85 per cent LTV. The prediction that Help to Buy has hindered the market has not been reflected in our business or the business of our brokers, as was debated by the industry late last year. These figures show yet more good news for the sector and I am confident the BTL market will continue to grow into 2014.”

Buy-to-loans for house purchases did decrease slightly at the end of last year, nevertheless the loans totalled the same value of £1.1bn as in October.

Despite a promising increase in BTL activity, caution and responsibility is still required to guarantee a successful recovery from the recession. Bennett of Shawbrook added:

“The new products aimed at property investors need to take into account interest rate rises when they occur. The forthcoming MMR guidelines show the importance of stress testing throughout the mortgage industry. This includes commercial mortgages, and property investors need to ensure that their property portfolios will generate enough income to cover mortgages once interest rates go up.”

According to the CML report there was also a 24 per cent increase on loans to first time buyers in November 2013 compared to the same month the preceding year.