Buy To Let Mortgages
Buy To Let Mortgages have been solving landlord's funding requirements for the last 10 years. On four consecutive years Landlord Mortgages have been awarded Buy To Let broker of the Year. Contact the Buy To Let Mortgages experts on 0800 917 3324.
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Buy to let
mortgage quotes can be obtained from leading buy to let mortgage providers. The mortgage interest rates are far lower than you would obtain when 'walking the high street'.
Buy To Let mortgages can be arranged with no broker fee and at rates as low as a few points over base.
Over 152,000 buy to let mortgages were issued in the first six months of 2006.
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The value of the buy to let mortgages amounted to £17.5 billion an increase on the same period last year (the previous record).
The news from the Council of Mortgage Lenders estimated the arrears rates on buy to let properties had increased to 0.7% from 0.3% but the 0.7% had remained static for the last two years. When you considered that the number of buy to let mortgages had risen from around 70,000 in the year 2000 to 800,000 in the current year.
Recent News
Rental Yields Reveal Signs of Recovery
Scottish Yields Continue to Outperform the rest of the UK
October 2007: New data from Landlord Mortgages, the UK’s largest specialist buy-to-let broker, reveals that rental yields are showing signs of recovering from their long-tern downward spiral. Rental yields in Scotland have increased by 0.45% over the last quarter (from 5.85% in Q2 to 6.03% in Q3), increasing the gap between Scottish yields and the rest of the UK to 0.61%. Yields in England stabilised over the last quarter, remaining at 5.45%. London was the only region to see a continued downward spiral in yields, falling to 5.25% (5.38% in Q2).
Chart One – Rental yield figures for buy-to-let properties (new and remortgage)
These new figures reveal that the continual fall in rental yields, evident since the end of 2006, may finally be coming to an end. The house price boom experienced in the UK over the past decade, coupled with rents remaining static, has resulted in fairly low rental yields over the last year. Therefore, buy-to-let investors have relied on capital appreciation to make a profit.
However, these new figures show that house prices are beginning to level off, resulting in higher rental returns, as rents are increased in line with house price inflation.
The increase in rental yields in Scotland show that capital appreciation in the region is stabilising and returns on the rental property are becoming more profitable. The fact that London rental yields are continuing to fall further is a sign that the Capital is still experiencing higher house price growth than the rest of the UK.
Lee Grandin, Managing Director at Landlord Mortgages comments;
“It is great to see that rental yields are rising, with returns in Scotland increasing by 0.45% in the last quarter, and yields in England remaining steady. This can be attributed to a cooling property market, which has allowed rents to increase in line with the healthy capital appreciation these buy-to-let properties have experienced over the last few years.
“As properties in the Capital are still experiencing high house price inflation, yields in the region are still falling, but at a much slower rate than last quarter. These factors are great news for buy-to-let investors, as due to a lack of good rental property, landlords are managing to increase their rents offering a much more profitable return on their investment.
“This research shows the future of buy-to-let is looking positive, as we expect rental yields to increase further next quarter. In addition, the turmoil experienced in the sub prime market may lead to an increased demand for buy-to-let property. With many people having their finances stretched to the max with higher debt repayments and mortgage offers growing increasingly uncompetitive and thus unattractive, many will be turning to rental accommodation until the market settles.
“If this happens, demand for rental property could increase dramatically, increasing returns on rental property, which would be great news for buy-to-let investors.”
