Increase in buy to let mortgages predicted by brokers
Property website Approved Trader has carried out research of 150 mortgage brokers shows that 94 of the brokers asked are predicting an increase in the amount of buy to let mortgages in the coming months. The increase is matched by the number of BTL mortgage plans available from mortgage lenders; Moneyfacts research shows mortgage plans available have gone up to 665 from 466 an increase of 42.7%.
A statement from Richard Harvey from Approved Trader said “The increase in number of people buying properties to rent, shows how people are still finding it difficult to get onto the property ladder, over recent years we have seen increase in the cost of living, while wages have not kept up pace with these increases”
Over the last couple of years we have seen mortgage plans become more available at very low rates available to people with smaller deposits, this combined with government schemes such as help to buy has helped but not solved the problem
”These changes are helping people become home owners, but the affordability is still a concern, and with the possibility in an increase in mortgage rate, people are still war of not being able to afford to keep up on the mortgage repayments” said Richard from Approved Trader.
As the Buy to let market continues to increase with more lender offering specialist plans and better mortgage deals will help to fuel the increase, rental properties have especially increased in student area`s with more people looking to make money out of the large student rental market during term times, this is shown in the increase in property values in the vicinity of large universities and colleges
Read more at www.approvedtrader.co.uk