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With a mini-boom set to continue, buy to let advice is to “buy now”
With a mini-boom set to continue, buy to let advice is to “buy now”
Landlords’ mortgage borrowing has risen by nearly a third in the last year, with half of those applying for buy to let mortgages buying their first investment property
Tarporley,
Cheshire,
United Kingdom
(prbd.net)
10/09/2012
Landlords' mortgage borrowing has risen by nearly a third in the last year, with half of those applying for buy to let mortgages buying their first investment property.
Buy to let lending in the period to April this year totalled over £4billion with over 34,000 mortgages awarded to investors according to the Council of Mortgage Lenders (CML) and this mini-boom is set to continue.
Many potential first time buyers are stuck in the rental market as they are struggling meet lenders' strict lending criteria and save the large deposit required. Therefore landlords are snapping up properties especially flats and starter homes. Figures have revealed that the number of advances for purchases is up 29% on last year.
With the low interest rates currently on offer combined with the high demand for rental property, now is a good time to buy - these properties make a very attractive investment proposition.
The buy to let sector is continuing to increase its share of the mortgage market, making up nearly 13% of the mortgage sector.
The average loan to value on buy-to-let mortgages is currently sitting 75 per cent with an average rental cover of 125%, the large deposit required by lenders is preventing many people from buying investment properties, so the market is still being dominated by experienced landlords.
Susan Alexander is a property mentor, she specialises in buy to let advice and helping property investors build a successful property portfolio. She says:
"I'm not sure how the council of mortgage lenders (CML) calculate their figures, however based on my experience of working with and coaching a number of other property investors, lending has become more difficult to obtain, with criteria being tighter and many being turned down even some with excellent credit scoring. If there is an increase then this is a positive sign that the lending market is improving. With the right coaching and advice, many people are getting their foot on the investment property ladder."
So many people think they can invest in property themselves and feel that they don't need additional advice. Consider most of the worlds most successful people, they fast track to where they want to go by getting a coach or mentor
For more details visit: http://www.susanalexandercoaching.com/
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This is where using an experienced property mentor who is also an investor can be invaluable in helping get a buying investment property decision right every time. For more details visit: http://www.susanalexandercoaching.com/
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