Buy-To-Let Mortgages Improving To Meet Increased Demand
UK mortgage lenders are offering more Buy-To-Let mortgages, with better rates on smaller deposits, in response to soaring demand from property investors and portfolio landlords over the past year.
Buy-To-Let mortgage lending increased by 18.6% in 2013 compared to 2012, according to the latest figures from the Council of Mortgage Lenders (CML).
The last quarter of 2013 also saw Buy-To-Let mortgage lending finish strongly, despite a predictable seasonal dip in December, with lending up 20% against the same period of 2012.
Demand for Buy-To-Let mortgage loans is picking up as landlords in the UK seek to expand their rental property portfolios, with over 30% aiming to buy more properties in the next 12 months and more than 80% of UK private rental sector (PRS) landlords are making a full-time living from their lettings activity according to the latest BM Solutions/BDRC Continental Landlord Panel.The survey also revealed that the average amount owed by tenants in arrears has fallen to just £1,499 (GBP), a three-year low, despite continually rising rents in most regions.
Many Buy-To-Let mortgage lenders previously demanded deposits of 40% to access the best rates, but With more people in the UK forced to rent, demand for buy-to-let mortgages is increasing.
Buy-To-Let mortgage are very profitable for lenders and more lenders are expected to enter the market over the course of the next year.
Although the tracker deals look compelling, those opting not to accept fixed rate mortgage products run the risk of interest rates going up in the next two years and borrowers are warned that there is always a risk associated with tracker rate mortgages and they can increase without warning. It may not always be the best policy to take a marginally cheaper tracker, particularly if you can fix in by paying slightly more.
- Click to share on Facebook (Opens in new window)
- Click to share on Twitter (Opens in new window)
- Click to share on Google+ (Opens in new window)
- Click to share on Tumblr (Opens in new window)
- Click to email this to a friend (Opens in new window)
- Click to share on Reddit (Opens in new window)
- Click to share on Pocket (Opens in new window)
- Click to print (Opens in new window)
- Click to share on Pinterest (Opens in new window)