Buy-to-let market holding steady

2016 saw the buy-to-let market surge ahead with investors seeing this as a potentially good return on their investment, after all savings returns are very poor in comparison. A recent report shows the market looks set to continue to grow although at a reduced pace. More and more landlords are converting to limited company status due to the tax changes and this seems to of had a stabilizing effect on the business in general.

Where to invest is a question always being asked, recent reports show that Manchester, Hull and the Blackpool areas are currently seeing very good growth. This is all due to reasonable house prices compared with the South of England and an increased demand for rental property.

Landlords in these areas are seeing a very healthy return on their investments compared to leaving the money in a traditional bank account. One of our regular clients commented “Demand for quality rentals is growing daily in the North and rents are increasing at a profitable rate”.

If you are considering entering the buy-to-let market or you are an existing landlord you are going to be spoilt for choice on your mortgage, even in the limited company area. There has never been such a good time for a buy-to-let mortgage deal as products in this area seem to increase daily and interest rates are at an all-time low.

This is all very good news but it is rumoured rates could be on the rise next year, so it may be very wise to keep this in mind. As a landlord if you have a mortgage deal coming to the end of its offer period or a no exit penalty deal you may wish to look at the range of fixed rates on offer. Fixing your next buy-to-let mortgage for 2-10 years could be the wisest move you could make to maintain profitability.

If you require assistance or would like to talk over your current mortgage contract please do call one of our experienced advisers and we will be pleased to help.