There is a vein of positivity running through the buy to let mortgages market. According to research carried out by CHL Mortgages, 71% of landlords and buy to let mortgages holders feeling upbeat about the future of the buy to let sector in 2013 and a third plan to expand their portfolio in the near future.
However 56% of landlords and investors told CHL Mortgages researchers that they would be holding off on buying or selling any properties for the next year or until the current economic uncertainty is resolved. And with the government’s austerity plans now proposed to continue well into 2018 – an increase of more than 3 years on the original 2015 prediction – when this stability will occur is anyone’s guess.
Buy to Let Mortgage Rates in Crisis
There is talk of buy to let mortgages UK being linked to EU regulations, which stipulate that buy to let mortgage rates must be based upon an individual or company’s declared annual income, as opposed to the rental income capabilities of the property in question. Many believe that this could signal the end of the buy to let mortgages market as, under EU regulations for people seeking a mortgage, buy to let rate assessments will have to fall in line with residential mortgage rates.
Market Increase for Buy to Let Mortgages
Despite recent difficulties, the Council of Mortgage Lenders has reported that buy to let mortgages now comprise 1/8th of the total number of residential mortgages – an all time high. And with rents having increased throughout 2012, with this trend looking set to stay on course for 2013, now seems like a good time to invest in buy to let property if one is able to raise the necessary financing.
Hot off the press are the new Leeds Building Society buy to let rates and reduced rates on its 10 year fixed range of buy to let mortgages. A two year buy to let mortgage at 3.55% is now available from LBS with up to 75% LTV, no higher lending charge and 10% capital repayments allowed without penalty for each year. In addition, Phil Coombes, Head of Intermediary Sales at LBS, has been quoted saying, ‘We believe it’s a very good time to lock into a low fixed rate and have reduced rates on our buy to let deals by up to 0.7%’.
Is the Time Right for Buy to Let Mortgages?
Since this issue has experts so divided, the best choice for people looking to purchase buy to let mortgages seems to be – as always – to obtain expert financial advice before making a decision either way. Property is a great investment and buy to let mortgages are plentiful, but the financing options for obtaining such a mortgage are still murky. For more information visit www.themortgagebroker.co.uk, for up-to-date advice about buy to let mortgages, rates and financing options.