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Buy-to-let mini boom
Buy-to-let mini boom
A buy to let mini boom has continued, with a report by the Council of Mortgage Lenders (CML) showing that mortgage lending to investors is up by 32% in a year.
Wilmslow,
Cheshire,
United Kingdom
(prbd.net)
10/09/2012
A buy to let mini boom has continued, with a report by the Council of Mortgage Lenders (CML) showing that mortgage lending to investors is up by 32% in a year.
In the first quarter of 2012, new buy to let lending figures reached £3.7 billion with over 32,000 mortgages taken out by investors. This is a rise of 32% on the same period a year previously. However, this is a fall on the last three months of 2011 showing that although the amount of buy to let purchases has increased, investors could be losing their appetite for buying up rental properties and buy to let lending is still only 30% of the 2007 figures.
While first time buyers and homeowners generally are facing difficulty getting a foot on the property ladder and continuing to rent, it seems that landlords are taking advantage.
The lending criteria for buyers is still strict, with many lenders requiring high deposits whist at the same time rental prices for small properties has increased by 7% according to Findaproperty.com.
The average loan to value available for buy to let mortgages is around 75%, with the minimal rental cover 125%, which remains unchanged for three years.
Richard Ignatowicz is a whole of market mortgage broker at Mortgage Savers. He says:
"Landlords are in a fortunate position of being able to get some real property bargains right now so these figures probably reflect the fact that they are in a position of strength and can pick and choose. Any mortgage activity is better than nothing but it is a shame that the banks are not relaxing their lending criteria for first time buyers -whether it is buy to let or residential they still to want bigger deposits from buyers, 4+ years into the credit crunch they are still not making life easier for consumers.
Richard Ignatowicz, who runs Mortgage Savers is a "whole of market" mortgage brokerage. They are fully qualified consultants, not sales reps; offering totally impartial help and guidance. They help people find the best residential, commercial or buy-to-let mortgage product available from over 200 lenders offering in excess of 10,000 mortgage products.
Richard is also an experience property investor and Landlord himself and can offer excellent advice to other investors, especially if they are just starting out in building a property investment portfolio.
For more details visit: http://www.buytoletmortgageadvisor.co.uk/
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About
Richard Ignatowicz, who runs Mortgage Savers is a “whole of market” mortgage brokerage. They are fully qualified consultants, not sales reps; offering totally impartial help and guidance
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