January 28, 2009
Buy To Let Finance Stalls Property Investors From Increasing Their Portfolios
The lack of good buy to let deals is keeping many UK property investors from increasing their current property portfolios.
Moneyfacts.co.uk has stated that nearly 93% of buy to let mortgage deals have dissappeared over the last 2 years. Couple this with the fcat that investors who wish to purchase a property investment must find a minimum of 20% deposit. Good old Mr Brown and his government are sure to face increased pressure to force banks to lend to each other in order to ease the lack of liquidity, especially when he has thrown them billions in bailouts over the lst few months.
Even for landlords who have the required minimum 20% deposits, there are only about 15 buy to let deals to choose from.
Many lenders are rejecting advance to people with good credit scores as they want to limit their exposure in the residential buy to let market.
I am confident that over the coming months liquidity will improve gradually, not to the levels it was 3-4 years ago, but to a level for people who have a good credit record to obtain finance at reasonable rates.
