New Research Discovers That Quarter Of Potential Property Investors Don’t Even Know How To Apply For Buy To Let Mortgages
New research by a specialist mortgage lender has discovered that an amazing 28% of would-be property investors don’t know how to apply for a buy to let mortgage in order to finance their property purchases.
The figures show that 1 in 4 potential property investors considering investing in property to boost their retirement income don’t know how to apply for a buy-to-let mortgage to get started on their property investment journey.
The research, conducted by specialist mortgage lender Kensington, also found that 54% of people approaching retirement age would consider investing in property using buy-to-let mortgages in order to help increase their income in retirement, but many didn’t know what they needed to do or what evidence to provide in order to apply for the correct type of mortgage.There has been a great deal of speculation that there would be an increase in the number of people choosing property to provide for retirement income leading to increased demand for buy-to-let mortgages following the pension reform announcement made by the Chancellor, George Osborne in the Spring 2015 budget.
New property investors and would-be landlords, who are considering investing their pension cash in property, believe that the biggest risk would be failing to achieve a comfortable level of retirement income from their property investments.
- 47% of those surveyed expressed concern about the risk of not achieving the income they want
- 42% of those surveyed feared running out of money in retirement.
- 25% of those surveyed were concerned about the income tax implications of withdrawing pension cash to invest elsewhere
- 21% of those surveyed were concerned that they would not understand the rules on buy-to-let.
The outlook for the UK property market remains optimistic and there is huge potential for further growth in investment in the UK’s private rental sector because of the pension freedom now offered to retiree’s.
However, potential property investors and would-be landlords need to be realistic about the potential yields they can expect to receive and should endeavour to get professional advice from experienced property investors on the validity and financial viability of any potential property purchases before jumping straight in, this is what is called Due Diligence.
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