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I was a bit surprised to learn today that buy to let mortgages are still one of the most buoyant sectors of the mortgage market.

According to the Council of Mortgage Lenders (CML), lending for house purchases and remortgages fell by 11 percent during the last year, however loans for buy to let investments actually increased during the same period.

Commenting on the general state of the mortgage market, Michael Coogan, the CML Director General, said that “affordability clearly remains challenging but there may be some relief for borrowers with expectations of an interest rate cut, perhaps as early as November.”

So if there is an increase rate cut soon, then this is clearly good news for home owners. But as I said before, in my area, at least, new flats do not appear to be taken up by buy to let investors at the moment.

Perhaps the disparity between what the CML survey shows and what is going on around here is because their survey is for the period for the year to August 2007. As this was before the Northern Rock crisis, their findings may not be a good predictor of what will happen to the mortgage market in the coming months.