The announcement in 2011 that Santander was to enter the buy-to-let mortgage market in 2012 was not surprising. The number of lenders seriously offering buy-to-let mortgages has increased from a handful to over 40 in just 18 months. Buy-to-let mortgages are more profitable for lenders as landlords pay higher interest rates and fees when setting.. read more →

House prices fell 0.6% in June (Nationwide survey), taking the average house price down to £165,738, according to Nationwide. This is most appealing to buy-to-let investors who are hunting down bargains. Even when mortgage finance is more widely available and people who are now renting start to look to buy, it will be the buy-to-let.. read more →

An increasing number of first-time landlords attracted by the promise of making money in the buy-to-let market, says lettings agency Connells The combination of a high demand for rented property and a lack of suitable properties has meant that landlords can charge more for homes. The buy-to-let market is set to continue growing for the.. read more →

Templeton LPA director and receiver Paul Jardine says “The wider buy-to-let rental market currently includes a much higher proportion of financially comfortable tenants who would have been buyers before the initial credit crunch.” This has reduced arrears as a whole in the buy-to-let market which is good for investors. He goes on to warn, “However,.. read more →

02 Jul 2012
July 2, 2012

Why is buy-to let booming?

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The cost of home ownership is cheaper than renting in 42 of the top 50 towns and cities in Britain, according to property website Zoopla.co.uk. It now costs 14% more per month on average to rent a home compared to servicing a mortgage on an equivalent property. So why are landlords snapping up buy-to-let properties.. read more →

Declining home ownership and the rapidly increasing number of buy-to-let properties will cost the government an extra £8bn in housing benefits for the elderly by 2060, a think tank claims. The Strategic Society Centre claims that projections of declining owner-occupier rates and rising buy-to-let investment properties could cost the government billions more in benefit payments… read more →

28 Jun 2012
June 28, 2012

Virgin backing buy-to-let

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Virgin Money, or the old Northern Rock as we fondly remember, has just raised £500m in loans to lend as mortgages. The new bank has a keen focus on the strong buy-to-let market and is intending to challenge more established lenders. Virgin had hoped to be “out of the blocks” more quickly, but to ensure.. read more →

A group of previous capital speculators have become the new breed of buy-to-let landlords. After the collapse of Lehman Brothers and the ensuing credit crunch, there were people who became accidental landlords. They were sitting on properties which they bought for capital growth and then couldn’t sell. Then as the rental market strengthened, these landlords.. read more →

Buy-to-let landlords have increase their market share of UK property by 42% since January 2007. 19% of the housing stock is now in the hands of buy-to let landlords. The consequence of tighter lending in the residential market has led to a buy-to-let boom. Cash rich landlords are benefiting from the lack of bank lending.. read more →

Interest only mortgages for domestic residences will pretty much become a thing of the past. However, in the buy-to-let sector, this kind of loan is still viewed as a reasonable method of funding an acquisition, as the asset is held in security against the mortgage. Buy-to-let mortgages have predominantly been interest only for two reasons… read more →