We all know how the buy-to-let market has grown over the last 10 years and nothing seems to slow it down. More existing landlords and indeed new ones are buying properties to convert to this very lucrative market. A very interesting report has just been released with some astounding facts and figures, below are the highlights. 1 Buy-to-let represents nearly 15% of the total mortgage lending 2 In 2004 this figure was just 7.6% 3 Over the last 18 years an investor on selling could see a profit of 1400% 4 If that money had been invested in gilts the returns would have been 230% 5 Lenders need to see on average a rent income of 125% of mortgage payments 6 In 2001 2.3 million houses were rented 7 In 2015 5.4 million house are recorded as rented 8 It is estimated lettings will rise to 7.1 million in the next 10 years 9 Part time landlords make up 70% of the private renting sector 10 It is estimated by 2025 50% of people under 40 will be renting 11 94% of landlords own less than 5 properties As you can see some very hard hitting facts and figures and if the estimates are correct now is the time to start thinking buy-to-ley for your investment. Buy-to-let mortgages Most of the major banks and building societies offer buy-to-let mortgages and a number of specialist lenders provide them too. Never just opt for the first buy-to-let mortgage you find, as rates vary widely and you may be able to find a much cheaper deal elsewhere. Please do call us and we will do all this for you once we have established your needs. A lot of expats are turning to fixed rate deals as a rate rise is predicted in the near future deals range from 2-10 years, it is so important to select the right plan for your needs. Do call us to discuss your requirements and we will be happy to assist.
