Buy to let provides long term security
Property investors should still be benefiting from lower mortgage repayment rates, as many will have now reverted back to their lender’s Standard Variable Rate (SVR) and the record low Bank of England (BoE) base rate remaining at 0.5% has certainly done property investors a huge favour.
This is of massive benefit to property investors as a lot of buy-to-let mortgage deals do not have typical SVR’s but they do revert to a rate that tracks the Bank of England base rate.New Buy-To-Let mortgage deals appear expensive in comparison to previously available residential deals and some property experts acknowledge that 2011/12 has been a tough time for buy-to-let property investors.
But with residential property prices dropping to more affordable levels, investors who invest for rental returns rather than capital growth are even more tempted, however, property investors need a fairly high value deposit to get the best buy to let mortgage deals available and investors should not expect instant returns.
If UK property investors are willing to accept that the value of their property may continue to slide in the short term, and can ensure their property meets the criteria of at least 75% to 85% loan-to-value, returning 125% of monthly mortgage payments then it will be a good long-term investment and is worth going for!
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