Buy-to-let lending in the UK has increased by 19.4% year on year in the first four months of 2015. This type of lending is outpacing residential mortgages which were up only 1.7% in the same period. The survey showed the average residential mortgage was £177,000 which is up 4.8% on last year and buy-to-let was £151,000 up 4% on the same period. Lending in the buy-to-let market had its biggest month for 8 years last month which proves what a growth market this area is. One of the main reasons for such growth is down to traditional savings accounts offering such poor returns. Savers are looking for alternative ways to invest for potentially better returns and this has prompted substantial growth in the buy-to-let market. This has created an oversupply of investors and an undersupply of suitable property for sale and therefore prices are rising. Mortgage interest rates continue to attract the new and existing investor as we see the lowest rates on offer for many years. Lenders have seen the buy-to-let market as a growth area and subsequently increased the product range available. If you are considering this area of investment it would be very wise to seek advice on the mortgage products available as the choice is vast. Buy-to-let re-mortgage A good many of existing landlords are always looking for ways to increase their portfolios and one way of doing this is releasing equity in their current properties. With property prices still on the increase investors can raise funds for deposits on new property purchases. Like new mortgages re-mortgages have very attractive rates on offer as well. Landlords also see this as an opportunity to review their complete portfolios ensuring maximum profitability overall. Mortgage assistance? If you are contemplating entering this market or require assistance with a re-mortgage please do contact us. We have experienced advisers who will find the correct deal for you.
