July 9, 2010
Buy To Let & Property Investment Mortgage Lending Returns
The buy to let industry is surging back to health after the recession according to financial and property specialists thanks to favourable mortgage deals and rising demand.
Three years ago there were 3,650 mortgages for landlords. This fell to under 180 late last year. But mortgage lenders are reintroducing cheaper buy to let products.
Now there are 300, according to financial website Moneyfacts.co.uk, and some are offering 80 percent loan-to-value.
Melanie Bien, a director at mortgage broker Private Finance, said in an interview with The Telegraph: “With property prices rising, more lenders are likely to follow suit and edge up their maximum loan-to-values.
“It is just a question of when this will happen. While there is little choice of remortgage deals [for existing landlords] this isn’t such an issue when interest rates are low.”
Statistics from Findaproperty.com also suggests the buy to let market is stronger than ever.
Researchers at the website have found yields are on average 4.54 per cent across the UK and just over seven percent in parts of London. In 2008 they dipped to two per cent or less in many places.
