Buy-to-let investments appear to be back in great demand thanks to an improved investor appetite and greater choice of mortgage products according to Mr Singh group director.
The return of buy-to-let investment is most encouraging in 2014. We are finding that 30 percent of all group sales activity is with investors. With the property being sold and placed back on to the rental market with ourselves.
This is a real delight considering the last 5 years have been very slow and sluggish with a near halt in new activity. Luckily, as anticipated, the UK has come out of two recessions very quickly and fiercely, with numbers now back ahead of the pre-recession levels.
We are finding that the experienced buy to let landlords are back and growing their portfolios with confidence again and this really is an important part of the market. Research by Mortgages for Business points to a greater uptake of 5 year fixed rate products – a number which has more than doubled since 2012. One year fixed rate deals are more or less obsolete with smart investors now adopting fixed rate deals in order to protect themselves from predicted rate rises.
Investors are conscious of the recent warning from Bank of England Governor Mark Carney that interest rates will go up. However, he has promised they will be materially lower in the medium term than they have been historically. Nevertheless he has cautioned that a rise will have to be made soon if wider economic problems are to be avoided. It was inevitable that the base rate would not remain at a historic low of 0.5 percent forever. Many investors would have enjoyed a good five year run if they were on a tracker rate.
Lloyds Bank, in particular, are currently offering new customers an iPad mini in the latest attempt by lenders to attract mortgage borrowers. Fixed five year rate deals provide certainty to landlords and with a choice of 128 products on the market today, maybe now is good time to shop around for that deal.
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