Home Loans for Landlords or Buy to Let Mortgages
Strange as it may seem this is a great time to buy to let. Rents are at ridiculous heights 600 a month (900 $) for a room in somebody else’s house. The Council of Mortgage Lenders statistics show that both volume and value of buy-to-let loans have risen significantly.
In the third quarter of this year 34,500 buy-to-let mortgages were agreed, an increase of 16% on Q2, amounting to £3.8 bn, up 19% over the quarter.
This is its highest level in 3 years.
One estate agent described the sector as “red hot”.
The reason for all this activity in the rental mortgage sector is that demand just keeps on growing (could it be people can’t actually afford to buy a house or get a mortgage or home loan so they have no alternative?).
Over Q3 properties it took an average of just 13 days to rent a home, a new record.
Viewings are also up, by 17.8% compared to Q2. There are 5 tenants for every property on the market.
And surprise surprise rents are up again, at an average of £718 ($1100) in September, another record.
Demand for rental properties shows little sign of abating.
So if you’ve got some spare cash sloshing about or ifyou can get a mortgage or home loan then this is probably a good time to consider investing in property again, just don’t bite off more mortgage than you can chew otherwise you might just end up giving your money to the banks, which is hardly the aim of the exercise.
See also are reverse mortgages a good idea? and home affordable modification program